Electric Car Stocks Rally On Xpeng Motors Earnings; Li Auto Earnings Due - Investor's Business Daily

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Xpeng Motors (XPEV) reported mixed third-quarter results in its first earnings report since its August IPO. Xpeng stock, one of the year's hot new electric car stocks, jumped early Thursday.

Fellow Chinese electric car IPO Li Auto (LI), which also emerged in the wake of supercharged Tesla (TSLA) and Nio (NIO) shares, reports Friday.

Xpeng Earnings

Estimates: Analysts expected a loss of 18 cents per ADS on revenue of $284.6 million.

Results: Xpeng lost an adjusted 32 cents per ADS. Revenue came in at $293.1 million, up 342.5% in local currency terms.

Gross margin was 4.6% vs. -10.1% a year earlier.

Vehicle deliveries, already reported, hit 8,578 in the September-ending quarter, up 266% vs. a year earlier and 166% vs. Q2 2020. Deliveries of the P7 sedan, a rival to the made-in China Tesla Model 3, jumped to 6,210 vs. 325 in Q2. P7 deliveries began at the very end of Q2.

Outlook: Xpeng sees Q4 deliveries of 10,000 electric vehicles, up 211% vs. a year earlier. Revenue should hit 2.2 billion renminbi, equal to about $332 million. The China EV IPO already said October deliveries hit 3,040, including 2,104 P7s.

Stock: Shares soared 13% to to 37.88 in premarket trading on the stock market today, after surging past a 23.20 early entry and a 25.10 official buy point last week amid booming Chinese EV sales. Xpeng stock priced at 15 in a bumper $1.5 billion IPO in August.

On Wednesday, Bank of America backed a buy rating on Xpeng stock while hiking its price target to 36.20. It cited a robust EV pipeline that should boost top-line growth.

Among other electric car stocks, Tesla rose a fraction early Thursday. Nio, which reports Nov. 17, climbed 4%. And Kandi Technologies (KNDI), which reported mixed results Monday, jumped 10% in the premarket.

Hyliion Holdings (HYLN), which focuses on electric vehicles for commercial transport, also reports earnings for the first time since it emerged in October after a blank-check merger.

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Li Auto Earnings

Estimates: Loss of 4 cents per share on revenue of $342 million.

Results: Check back Friday morning. The company announced a massive recall of its Li One electric SUVs recently.

Stock: Shares rallied 7% early Thursday after blasting past a 21.96 cup-with-handle buy point a week ago. Li Auto scored a $1 billion U.S. IPO in July, pricing at 11.50.

Find Aparna Narayanan on Twitter at @IBD_ANarayanan.

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