Why XPeng Shares Jumped and Brought Nio Along for the Ride

Shares of Chinese EV makers popped in early trading Tuesday. The excitement was due to the latest earnings report from fast-growing XPeng (NYSE: XPEV), which came after shares of competitor Nio (NYSE: NIO) soared yesterday.

Shares of XPeng jumped nearly 14% in early trading after investors got a look at its third-quarter report. Nio shares, which had soared 6.5% yesterday, also gained another 4% early in Tuesday's session. As of 11:40 a.m. ET, those gains had sagged, but Xpeng shares remained 7.2% higher, while those of Nio came back to breakeven.

It wasn't just that XPeng tripled its deliveries in the third quarter versus the year-ago period. Its gross margin soared both sequentially and year over year to 14.4%. That represented a jump of 250 basis points above its second-quarter 2021 performance. And investors liked what they have to look forward to from both companies, as well.

Source Fool.com