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July 7, 2022, 12:09 p.m. EDT

Tesla, other EV stocks rally after China signals support for its auto industry

By Claudia Assis

Shares of Tesla Inc. and Nio Inc. led the way Thursday among auto makers and related stocks after China unveiled plans to support its auto industry, including signaling it may extend tax incentives for electric vehicles.

American depositary shares of Chinese EV maker Nio (NYS:NIO) rallied 8%, while the ADRs of smaller competitors Li Auto Inc. (NAS:LI) and XPeng Inc. (NYS:XPEV) rose 1.5% and 5%, respectively. Tesla (NAS:TSLA) shares advanced 4%.

Other top gainers included shares of EV charging company EVGo Inc. (NAS:EVGO) , which jumped nearly 12%. Shares of startup Faraday Future Intelligent Electric Inc. (NAS:FFIE) , which has promised to launch its EV in the second half of next year, rallied nearly 30%.

The stock moves come as China earlier Thursday pledged to support its battered auto industry, calling it a pillar of its economy. The country also vowed to support the EV industry as well as “actively support” building charging facilities across the land.

Earlier this month, auto makers reported monthly or quarterly sales, with Wall Street cutting some of its expectations for Tesla Inc. after declining sales and EV maker Rivian Inc. (NAS:RIVN) holding on to its 2022 production goals.

Link to MarketWatch's Slice.