China Electric-Vehicle Stocks Are All the Rage, Trouncing Tesla

Shares of China’s electric-vehicle makers are trouncing global industry leader Tesla Inc., bolstered by Beijing’s consumption incentives and heavy dip-buying from investors.

American depository receipts of Nio Inc., XPeng Inc. and Li Auto Inc. have surged at least 64% each over the past month to be among the top gainers in Chinese stocks traded in the US. The sharp rally reflects improving sentiment following a monthslong slump due to worries over high valuation and supply bottlenecks.

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