Earnings

Nio reported third-quarter results that were results largely as previewed and gave a better-than-feared outlook for the fourth quarter, said Edison Yu's team.

Nio Day 2023 will be held on December 23 in Xi'an, Shaanxi province, Northwest China, where Nio will unveil a new flagship model.

Nio guided for fourth-quarter vehicle deliveries in the range of 47,000 to 49,000, meaning it expects to deliver between 14,967 and 16,967 vehicles in December.

Steps being taken by Nio should bear fruit in the coming quarters, but a material improvement in the sales trajectory may take more time, Edison Yu's team said.

Nio delivered 55,432 vehicles in the third quarter, slightly above the lower end of the guidance range of 55,000 to 57,000 vehicles.

Xpeng is confident of achieving rapid volume growth and a significant rebound in gross margin in the fourth quarter.

"Promotional activity appeared more aggressive than anticipated," Deutsche Bank said.

Xpeng guided for fourth-quarter deliveries in the range of 59,500 to 63,500 units, meaning it expects to deliver a total of 39,498 to 43,498 vehicles in November and December.

Li Auto's third-quarter results were somewhat mixed, with a strong outlook for fourth-quarter sales, according to Deutsche Bank.

Li Auto reported gross margin of 22.0 percent in the third quarter, higher than 12.7 percent in the same period last year and 21.8 percent in the second quarter.