: Nio and stocks of other China-based EV makers rally, as strong economic data out of China offsets downbeat earnings reports


Shares of China-based electric vehicle maker’s rose Wednesday, as strong economic data out of China and investor optimism as Hong Kong lifted its mask mandate overshadowed mostly disappointing earnings reports. NIO Inc.’s stock NIO, +0.64% gained 1.3% in premarket trading, even after the company reported net losses that more than doubled to RMB6.00 billion ($861.9 million), or RMB3.55 per American depositary share (ADS), from RMB2.22 billion, or RMB1.36 per ADS in the year-ago period. Excluding nonrecurring items, the adjusted loss per ADS of RMB3.07 was wider than the FactSet loss consensus of RMB1.83, as gross margin contracted to 3.9% from 17.2%. Deliveries jumped 60% to 40,052 EVs. For the first quarter, NIO expects revenue of between RMB10.93 billion and RMB11.54 billion, below the current FactSet consensus of RMB17.38 billion, and deliveries of between 31,000 and 33,000 EVs, up 20.3% to 28.1% from a year ago. Elsewhere, XPeng Inc.’s stock XPEV, +3.72% jumped 3.9% in the premarket after the company reported a wider-than-expected loss and revenue that fell short of forecasts. Li Auto Inc.’s stock LI, +1.33% surged 5.9%, as the company reported earlier this week profit that beat expectations but revenue that missed. The stocks’ rallies come as China’s Shanghai Composite Index SHCOMP, +1.00% rallied 1.0%, Hong Kong’s Hang Seng Index HSI, +4.21% surged 4.2% and futures ES00, +0.31% for the S&P 500 SPX, -0.30% gained 0.3%.

This article was originally published by Marketwatch.com. Read the original article here.

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