Li Auto’s stock soars toward a record ahead of first earnings report

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Shares of Li Auto Inc. soared 25.8% toward a record on heavy volume in afternoon trading Thursday, as upbeat results from fellow China-based electric vehicle maker XPeng Inc. gave investors reason to be optimistic ahead of Li’s first quarterly report since going public in late-July. Trading volume jumped to 67.6 million shares, compared with the full-day average of 11.6 million shares. Li is slated to report third-quarter results early Friday, with analysts surveyed by FactSet expecting a per-share loss of RMB0.24 on revenue of RMB2.42 billion ($365.7 million). XPeng’s stock rocketed 37.0% toward a record in afternoon trading, after the company reported a loss that widened from a year ago but revenue that rose more than fourfold as deliveries jumped 266%. Fellow China-based EV maker Nio Inc. also rose XPeng’s coattails, as the stock shot up 12.3%, also toward a record; Nio is scheduled to report third-quarter results on Nov. 17. The big rallies in the China-based EV makers comes as the iShares MSCI China ETF is gaining 0.3%, while shares of U.S.-based rival Tesla Inc. are falling 1.4% and the S&P 500 is dropping 1.3%.
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