MarketWatch Site Logo A link that brings you back to the homepage. .mwA1{fill:#ffffff;} .mwA2{fill:#4db74d;} Chinese Electric Vehicle Makers Claw Back After Steep Fall

XPeng's shares are 6.4% higher on Thursday at 109.9 Hong Kong dollars (US$14), paring most this week's losses, while Nio's stock is 4.7% higher at HK$161.4, back to where it was before Monday's decline. The New York-listed shares of the companies on Wednesday closed 7.3% and 4.9% higher, respectively.

Some analysts say that the long-term prospects for EV production remain healthy despite the short-term pressures.

In Shanghai, where many automakers' plants are located, restrictions might be loosened soon in areas with no new cases over two weeks, said Jeffrey Halley, a senior market analyst at Oanda.

Nio earlier this month said that it was halting production due to shortages of auto parts from suppliers.

Portfolio manager at Fidelity International Casey McLean expects China's new energy vehicles to account for 80% of the country's auto sales by 2030.

Apart from EV makers, shares of lithium battery suppliers are also gaining traction after steep declines on Monday.

While there are short-term worries about a tighter supply of lithium, these constraints are expected to ease in coming months and Mr. McLean at Fidelity expects global supplies to "progressively improve" in the second half of the year.

Ganfeng Lithium, one of the world's biggest lithium companies, said last week that it plans to expand its production capacity of lithium spodumene concentrate to 600,000 metric tons a year, from 450,000 tons, by April. It aims for production to reach 900,000 tons by end-2022.

Ganfeng shares, which fell as much as 15% on Monday, is up 1.8% at HK$99.95 but still 8.4% lower for the week.

Write to Anniek Bao at anniek.bao@wsj.com