Why XPeng, Li Auto, and Nio Stocks All Soared Today
Shares of Chinese electric car stocks revved higher en masse on Wednesday morning, after investors found hope in a mixed third-quarter earnings report from XPeng (NYSE: XPEV). Heading into Q3, analysts had forecast that XPeng would lose $0.36 (pro forma) per American depositary share (ADS) on sales of just over $1 billion. As it turned out, XPeng lost exactly as much money as it was "supposed" to, while sales fell short at $959.2 million.
Despite the disappointing news from XPeng, shares of rival Chinese automakers Li Auto (NASDAQ: LI) and Nio (NYSE: NIO) are up 15.3% and 17% as of 9:50 a.m. ET -- and XPeng itself is up 28.1%.
XPeng barely met earnings expectations, and missed on sales, and its stock went up anyway -- a lot. And it's not just XPeng that went up; XPeng pulled Li Auto and Nio stocks higher along with it.
Source Fool.com
