Boosted by its local peers' better-than-expected earnings report, Chinese electric vehicle (EV) maker Nio (NYSE: NIO) shares surged above $50 in the pre-market trading session on Friday, hitting a new all-time high.
Nio is up 7% to $51.72. The stock was up 12 percent to $48.3 on Thursday, bringing the gain since the end of September to more than 130%.
Nio, Li Auto (NASDAQ: LI), and Xpeng (NYSE: XPEV) are three of China's largest electric-vehicle makers, and Nio's rally was driven by impressive third-quarter 2020 results from both Li Auto and Xpeng. Nio will release its own third-quarter financial results on November 17.
Earlier today, Li Auto posted third-quarter revenue of RMB 2.511 billion, which was well above the market's expectations of RMB 1.925 billion. The company reported a net loss of RMB 107 million for the third quarter, which was below market expectations of a loss of RMB 502 million.
Li Auto posted a non-GAAP net income of RMB 16.0 million (US$2.4 million) in the third quarter, compared with RMB 159.2 million Non-GAAP net loss3 in the second quarter of 2020, marking the first time it turned profitable.
Its gross margin was 19.8% in the third quarter of 2020, compared with 13.3% in the second quarter of 2020.
Li Auto delivered 8,660 vehicles in the third quarter and expects to deliver between 11,000-12,000 vehicles in the fourth quarter, up 27%-38.6% from the previous quarter.
Li Auto's stock rose 29% in Friday's pre-market trading session after surging 27% on Thursday and traded at record levels in mid-afternoon trading.
On Thursday, Xpeng posted revenue of RMB 1.99 billion in the third quarter, higher than market expectations of RMB 1.9 billion, the company said today in financial results for the third quarter ended September 30 and expects fourth-quarter revenue of about RMB 2.2 billion.
Its gross margin was 4.6% for the third quarter, the first time it turned positive. The figure was negative 10.1% for the same period of 2019 and negative 2.7% for the second quarter of 2020.
Xpeng's deliveries of vehicles reached 8,578, representing an increase of 265.8% from 2,345 in the third quarter of 2019 and an increase of 165.7% from 3,228 in the second quarter of 2020.
Deliveries of the Xpeng P71, which saw mass deliveries in late June 2020, reached 6,210, compared with 325 in the second quarter of 2020.
Xpeng shares rose by more than 11 percent in pre-market trading on Friday.
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