A trio of Chinese electric vehicle companies is revving up their engines, and they are ready to win! Nio (NYSE:NIO), Xpeng (NYSE:XPEV) and Li Auto (NASDAQ:LI) continue to race higher thanks to the booming market for electric cars and impressive growth in China. But what exactly has LI stock soaring more than 20% today?
Importantly, it may appear at first glance that there is no real news surrounding Li Auto. Nio has been climbing higher after announcing new battery advancements, and Xpeng just reported estimate-beating earnings. But what about LI stock? Why are investors chasing it up so much on Thursday?
The easiest answer is that the company will report earnings Friday at 8:00 a.m. Eastern. After Nio and Xpeng made waves, investors are likely betting that Li Auto will similarly deliver. However, there is also a lot to like about the up-and-coming EV name.
Here are a few things investors should know about LI stock:
- Ahead of its third-quarter 2020 earnings report, analysts are calling for a per-share loss of 8 cents on revenue of $290.87 million.
- Earlier in November, Li Auto rose on a different catalyst. Like its Chinese EV peers, it reported impressive deliveries for the month of October.
- What did the report look like? Well, it delivered 3,692 of its Li ONE model, which was up from 3,504 during September.
- Although Li Auto is newer to the public markets than Nio, it is an exciting name to watch. After coming public in July 2020 its stock has increased 90%.
- One of its areas of specialty is extended-range vehicles, which pair batteries with gasoline-powered range extenders. According to Li Auto, this helps boost the appeal of EVs while China builds out its battery charging network.
- Another interesting distinction is that Li Auto focuses on young, convenience-minded consumers. It takes inspiration from Tesla (NASDAQ:TSLA) and even Star Wars.
LI Stock: What to Watch?
If Li Auto meets or beats analyst expectations, it could send LI stock and its peers flying higher again. Also, look for any guidance on earnings, revenue or future vehicle deliveries to be a powerful catalyst.
So in other words, treat it how you would any other quarterly report. As you do this, you just have to know that Wall Street is seriously in love with LI stock and its electric vehicle peers. Why? The company has plans to eventually launch a catalog of SUV models, improve the BEV charging network in China and really take on Nio.
But even beyond that, the allure of electric vehicle companies is strong. Every investor just wants to find the next Tesla — or the next Nio.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.