Nio (NYSE: NIO) shares jumped early today for the second day in a row. Yesterday, Nio shares rose nearly 4%, and that trend continued this morning. In early Tuesday trading, Nio popped as much as another 8.3% before those gains faded. As of 11:53 a.m. ET, Nio held onto a slight gain of 0.2%. But there was good reason for the early optimism. 

Chinese electric vehicle (EV) maker BYD announced strong guidance for third-quarter earnings that drove its stock higher today. That EV maker said it expects third-quarter net profit to more than quadruple year over year to as much as $820 million, according to The Wall Street Journal.

That bodes well for what Nio and other Chinese EV makers will have to say in upcoming earnings releases. Warren Buffett's Berkshire Hathaway has been an owner of BYD shares since 2008. At the end of last year, Berkshire owned 7.7% of BYD. Earlier this year, there was speculation that Buffett may be exiting that position, but in fact only sold less than 1% of his holdings. 

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Source Fool.com