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Li Auto's stock bounces back, along with other China EV makers, as Li's public share offering is offset by upbeat delivery data

Tomi Kilgore

Li Auto' shares set to snap 4-day losing streak in which they tumbled more than 20%

Shares of Li Auto Inc. bounced sharply back Wednesday, as did the stocks of other China-based electric vehicle makers, as the Beijing-based company's disclosure of a large public stock offering was offset by upbeat monthly deliveries data.

Li Auto's stock (LI) rose as much as 5.1% in premarket trading after deliveries data was reported, then bottomed out with an 11.2% drop in morning trading after the share offering was disclosed.

The stock was up 0.9% in afternoon trading, putting it on track to snap a four-day losing streak, in which it tumbled 20.7% since closing at a record $43.96 on Nov. 24.

Li Auto disclosed in a Wednesday-morning filing with the Securities and Exchange Commission that it is offering 47 million shares of its U.S.-listed stock to the public. That represents about 5.6% of the American depositary shares (ADS) outstanding, based on data provided by FactSet.

Each ADS represents two Class A ordinary shares.

The share-offering disclosure comes after the company reported late Tuesday that it delivered a monthly record 4,646 Li ONE SUVs in November, up 25.8% from October.

Li Auto, which started production of the Li ONE in November 2019, and went public on July 30, has now delivered 26,498 vehicles year to date, including 8,660 vehicles in the third quarter, up 31.1% from the second quarter.

The shares of some other EV makers based in China also bounced Wednesday, in a delayed reaction to upbeat delivery data.

Nio Inc.'s stock (NIO) was down as much as 15.3% minutes after Wednesday's open, then pulled a sharp U-turn to be up 3.6% in afternoon trading. The bounce follows a two-plunge of 16.0%.

Shares of XPeng Inc. shares (XPEV) cratered as much as 12.1% just after the opening bell, then started a rally that has taken them up 7.3% in recent trading. That follows a 18.5% drubbing over the past two days.

The selloffs through Tuesday were suffered even after Nio reported November deliveries that more than doubled from a year ago and XPeng reported a more-than quadrupling in monthly deliveries.

Don't miss: Nio, XPeng stocks swing to losses despite big jumps in November deliveries (link).

Despite the recent pullbacks, shares of Nio have still skyrocketed 1,069.3% year to date through Tuesday. XPeng shares, which started trading on Aug. 27, have run up 166.5% over the past three months and Li Auto's stock has doubled (102.2%) since the end of September.

The iShares MSCI China exchange-traded fund (MCHI) has gained 3.6% over the past three months and the S&P 500 index has tacked on 2.2%.

What could also be causing a bit of volatility, the U.S. House of Representatives is expected to consider this week a measure (link) over whether China-based companies with stocks listed in the U.S. would be required to undergo audits reviewed by regulators or risk be delisted.

Elsewhere, Kandi Technologies Group Inc. shares (KNDI) fell 3.9% Wednesday, but pared an earlier plunge of as much as 18.1%. The stock had plunged 40.9% over the previous three sessions, as short seller Hindenburg Research took aim at the China-based maker of electric cars and battery packs.

Also read: Kandi stock plunges after short seller alleges 'brazen scheme' to falsify revenue (link).

On Tuesday, the company responded by saying it believed the Hindenburg report contained "numerous errors, misstatements of historical facts, inaccurate conclusions and superfluous opinions."

Shares of China Automotive Systems Inc. (CAAS) pared an early loss of as much as 16.6% to be down 8.0% in afternoon trading, after tumbling 17.3% on Tuesday. The stock had soared 174.2% on Monday, after an upbeat report on deliveries (link) of its power-steering products for use in EVs in China.

-Tomi Kilgore; 415-439-6400;


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12-02-20 1435ET

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