NIO Inc (NYSE:NIO), XPeng Inc (NYSE:XPEV) and Li Auto Inc (NASDAQ:LI) are trading higher Wednesday following positive analyst coverage from Macquarie. 

Macquarie analyst Erica Chen initiated coverage on Nio with an Outperform rating and announced a $37.70 price target. The Macquarie analyst also initiated coverage on XPeng and Li Auto with Outperform ratings.

Chen expects 31% annual electric vehicle unit sales growth for China, according to reports from StreetInsider.

The Macquarie analyst sees 52% annual revenue growth for Nio through 2024. Chen describes the company as the earliest electric vehicle start-up in the market with a focus on the affordable luxury auto segment and customer service.

The analyst thinks Nio is well positioned with its battery swap business model, as battery swapping is supported by the Chinese government. 

Shares of several Chinese companies are also trading higher following data showing China's inflation rose slower than expected in December, which has increased policy easing optimism.

See Also: Why Hyzon Motors Shares Are Falling Today

NIO, XPEV, LI Price Action: At publication time, Nio was up 4.03% at $31.23, Xpeng was up 4.33% at $47.74 and Li Auto was up 3.82% at $30.95.

Photo: courtesy of Nio.