Why U Power Stock Is Soaring Today

U Power Limited UCAR shares popped Wednesday after China disclosed a new 520 billion yuan ($72.35 billion) package of tax breaks for EVs and green energy vehicles.

What To Know: The tax breaks are intended to increase auto demand in the country, per Reuters.

A purchase tax exemption of up to 30,000 yuan per vehicle will be offered to new energy vehicles (NEVs), including battery electric vehicles, plug-in petrol-electric hybrids and hydrogen fuel-cell vehicles, purchased in 2024 and 2025.

The exemptions will extend into 2026 and 2027, but the total amounts will be cut in half during those years.

A rally in several Chinese EV stocks has occured due to the four year tax exemption extension coming in above market expectations.

Related Link: Why Dollar Tree Stock Is Rising Today

UCAR Price Action: Shares of UCAR were up 50.9% at $8.50 at the time of publication, according to Benzinga Pro.

Image by Lee Rosario from Pixabay