As of press time, Nio was up 5.29 percent, Xpeng was up 5.79 percent, Li Auto was up 9.88 percent and BYD was up 6.05 percent.

Electric vehicle (EV) stocks traded in Hong Kong surged in early trading today, as the market saw an overall recovery.

As of writing, Nio (NYSE: NIO, HKG: 9866) was up 5.29 percent, Xpeng Motors (NYSE: XPEV, HKG: 9868) was up 5.79 percent, Li Auto (NASDAQ: LI, HKG: 2015) was up 9.88 percent, BYD (OTCMKTS: BYDDY, HKG: 1211) rose 6.05 percent.

Hong Kong's Hang Seng Index rose 1.24 percent and the Hang Seng Tech Index gained 3.55 percent. Meituan rose 6.39 percent, though Alibaba remained slightly lower by 0.17 percent.

The mainland A-share market also saw a sharp rebound, with the Shanghai Composite Index up 1.29 percent and the ChiNext Index up 3.44 percent as of writing. Contemporary Amperex Technology Co Ltd (CATL, SHE: 300750) rose 6.44 percent.

China's CPI rose 2.1 percent year-on-year in April, above market expectations of 1.8 percent, according to data released earlier by the National Bureau of Statistics. China's PPI rose 8.0 percent in April from a year earlier, higher than expectations of 7.8 percent.

The country saw 302 new confirmed cases of Covid and 1,545 asymptomatic infections on Tuesday. Shanghai saw 228 new confirmed cases and 1,259 asymptomatic infections, according to data released today by local health authorities.

In company-related news, the Hefei Economic Development Zone and Nio signed an agreement on NeoPark Phase II and key core component support projects, according to an article released yesterday by the city government.

The project, which covers 1,860 mu (1.24 square kilometers), will import intelligent EV products from Nio's new mid- to high-end brand and is scheduled to be completed and put into production in 2024, according to the article.

The new brand will compete with automakers including Tesla and Volkswagen, the article noted, adding that its core team is now built and the first products are already in key development stages.

Li Auto reported revenue of RMB 9.56 billion ($1.51 billion) in the first quarter, beating market expectations of RMB 9.467 billion, according to its unaudited earnings report released on Tuesday.