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Nio, Li Auto Make Big Moves Following Xpeng's Q3 Results

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Nio, Li Auto Make Big Moves Following Xpeng's Q3 Results

Stocks of Chinese EV makers are on fire Thursday, extending their recent momentum, following strong quarterly results reported by Xpeng Inc – ADR (NYSE: XPEV).

Xpeng Leads Chinese EV to New Highs: Reacting to strong third-quarter revenue growth and an inflection in gross margin, Xpeng shares gap-opened higher at $36.58 compared to Wednesday's closing price of $33.53. The stock is witnessing strong buying momentum.

The highest sell-side price target for the shares is $42.99.

Related Link: Why BofA Is Bullish On Chinese EV Manufacturer Xpeng

Nio, Li Auto Move In Sympathy: EV peers Nio Inc – ADR (NYSE: NIO) and Li Auto Inc. (NASDAQ: LI) are also partaking in the rally.

Thanks to the rally, Nio is approaching another psychological resistance of $50. The stock took 22 sessions to move from $20 to $30, and in five sessions it moved from $30 to $40. It looks like a matter of time before Nio gets to the $50 mark.

Nio is scheduled to report its third-quarter results Tuesday before the market opens. Analysts, on average, expect the company to report a narrower loss of 17 cents per share and revenue growth of around 150% to $654.34 million.

The stock could be in for more gains in the run-up to the results announcement. Contingent on how the market perceives the earnings report, a further leg up cannot be ruled out.

Li Auto, which listed its shares on the Nasdaq in late July, is also seeing strong buying interest. The company is on tap to release its quarterly results Friday before the market opens.

Li Auto's upward momentum faltered late last week after the company announced a voluntary recall of some of its vehicles. The stock extended the weakness this week and was mostly lower ahead of today's rally.

The Price Action: Xpeng shares were jumping 28.54% to $43.06.

Nio was advancing 10.68% to $47.67.

Li Auto shares were rallying 19.74% to $29.90.

 

Related Articles (LI + NIO)

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