OUWA.org – Wondering How High XPeng and NIO Stocks Can Go? You’re Not Alone. Thursday, XPeng Stock shares jumped after the corporate reported third-quarter earnings. Its peers NIO and Li Auto were rising, too, surprising both traders and investors. The rally continued Friday after Li reported its third-quarter numbers. How high the shares might go is, frankly, anyone’s guess.
XPeng’s stock (ticker: XPEV) jumped 33% on Thursday following the better-than-expected results. NIO (NIO) stock climbed 12% and Li (LI) shares gained 27%.
Li shares are up another 5.7% Friday. Shares of NIO and XPeng are down 2.6%and flat, respectively.
Xpeng stock is now worth $31 billion. NIO stock is worth about $65 billion and Li is worth about $27 billion. that’s quite $120 billion, on a combined basis. By comparison, the combined worth of the Detroit-three— Ford Motor (F), General Motors (GM) and Fiat Chrysler Automobiles (FCAU)—is roughly $110 billion.
NIO stock is up quite 1,000% year so far. That’s a 10-bagger in Wall Street parlance. NIO is that the one Chinese EV stock with a full year of trading history, because the opposite two players from China didn’t start trading until the summer.
It doesn’t do any good to match them with the S&P 500 and Dow Jones Industrial Average over almost any recent time horizon. The stock charts look parabolic, leading investors to the apparent question: Where can they go?
Traders offered “I’m not sure” and “hmmm” when asked during a chat what could happen. Those are probably the proper answers. Li and XPeng are new, and even NIO may be a relatively small auto maker when measured by car volume. NIO delivered 12,206 vehicles within the third quarter.
Using the Tesla (TSLA) playbook, shares of XPeng, NIO and Li might settle in around their 50-day moving average. That’s where Tesla settled in at after the stock went parabolic in early September. Tesla shares are up almost 400% year so far but are down about 8% over the past month and down 4% since the start of October.
Price consolidation—as traders call a period of flat trading—after an enormous run isn’t a nasty thing. It gives people time to work out what’s next.
NIO’s 50-day moving average is going to be within the $30 range soon. that’s one place the stock could go until other catalysts kick in. NIO has one big catalyst coming, when it reports earnings on Nov. 16.
Li stock’s 50-day moving average is going to be within the mid-$20s soon. That’s where XPeng stock’s 50-day moving average is going to be, too. The 50-day moving average of any stock price changes as stock prices change every day.
There is another question investors are asking about the U.S. listed Chinese EV stocks: Why so high? a brief squeeze is feasible, but traders aren’t sure that, either, and there isn’t solid data on short-interest trading in American depositary receipts. An ADR essentially may be a U.S.-listed stock of a far off company, which NIO, Li and XPeng all are.