Why Nio and Xpeng Popped, but QuantumScape Dropped Today
Tesla's (NASDAQ: TSLA) surprise earnings beat last night was shaking up the electric vehicle (EV) industry this morning, as shares of solid-state batteries researcher QuantumScape (NYSE: QS) tumbled 1.5% through 11:15 a.m. ET, but Tesla's Chinese rivals Nio (NYSE: NIO) and Xpeng (NYSE: XPEV) gained 2.7% and 3.4%, respectively.
Tesla surprised investors by reporting $1.19 per share in profits on sales of $24.3 billion -- beating on both the top and bottom lines despite cutting prices on its electric cars over the past couple months. But that wasn't all Tesla told us last night.
Of particular note, Tesla told investors that demand for its cars is increasing as its prices decrease, to the extent that the company now expects to beat its earlier projections for 50% volume growth in 2023 and sell "around 1.8 million cars." This seems to confirm what Morgan Stanley predicted yesterday, that the EV market is changing and that both shoppers and investors are gravitating toward companies that can supply products quickly.
Source Fool.com
