Electric vehicle (EV) stocks trading in Hong Kong went higher today, after a sharp drop on Monday.
At press time, NIO (NYSE: NIO, HKG: 9866) is up 10.08 percent, XPeng Motors (NYSE: XPEV, HKG: 9868) is up 6.69 percent and Li Auto (NASDAQ: LI, HKG: 2015) is up 6.04 percent.
Hong Kong's Hang Seng Index is currently up 1.32 percent and the Hang Seng Tech Index is up 2.65 percent.
Major EV stocks all fell sharply in Hong Kong on Monday, with NIO down more than 11 percent, on concerns that Covid is hitting the supply chain.
A new Covid pandemic has broken out in several Chinese cities in the past two months, with lockdowns in areas including Jilin and Shanghai hitting the auto industry.
Tesla, for its part, has halted production since March 28, when Shanghai entered a phased lockdown.
New cases of Covid have also emerged in Ningde, Fujian province, where power battery giant CATL is headquartered, and the city has been tightening travel restrictions in some areas since April 10.
CATL is not currently shutting down production and is producing in an orderly manner through grid-based management, the Shanghai Securities News quoted the company as saying on Sunday.
The current Covid pandemic has taken a direct toll on Chinese car production of about 20 percent of total output, local media outlet The Paper quoted Cui Dongshu, secretary-general of the China Passenger Car Association (CPCA), as saying Monday.
The short-term production shutdown has caused serious losses for some car companies, and luxury brands including Audi, BMW and Mercedes-Benz have also been hit to varying degrees, with output severely below expectations, Cui was quoted as saying by the Securities Times.
After Monday's widespread sell-off, the Hong Kong and A-share markets extended their losses in early trading on Tuesday, although they rebounded in the afternoon.
The ChiNext index for A-shares is currently up 2.4 percent, while CATL is up 2.6 percent.
China added 1,251 local confirmed cases of Covid and 23,295 new asymptomatic infections on April 11, according to health authorities.
Shanghai added 994 new confirmed local Covid cases and 22,348 asymptomatic infections on April 11, of which 273 confirmed cases were previously asymptomatic infections.