Why did Li Auto’s shares rise on Tuesday? Good news about COVID (NASDAQ:LI)

Li Auto electric car store. Chinese electric vehicle manufacturer

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Li Auto (NASDAQ:LI) stocks moved higher on Tuesday, continuing strong momentum over the past month as COVID restrictions in China appear to be fading.

Specifically for Shanghai, 96.3% of industrial companies followed by the government were back to work, according to government reports released on the day. Before the restart of the operation, a production rate of more than 70% was reported by the state authorities.

Shanghai, which has been a key focus for Zero-Covid policy in China, is seen as a test case for much of the rest of the country. As such, positive trends are believed to indicate policy shifts in neighboring regions.

Fellow Chinese automakers Nio (NIO) and Xpeng (XPEV) also rose on the day, adding to their own profits of late as the sector grows in popularity again after scaring many away in the spring.

Read more about recent delivery data from Nio.