By Investing.com– Shares of Chinese electric vehicle makers rose in Hong Kong trade on Wednesday, with focus turning to third-quarter earnings from industry giant Tesla Inc (NASDAQ:TSLA), which are due later in the day.
NIO Inc (HK:9866), BYD Co (HK:1211), Xpeng (NYSE:XPEV) Inc (HK:9868) and Li Auto (NASDAQ:LI) Inc (HK:2015) advanced between 1.7% and 7.5%, with Li Auto outpacing its peers after announcing a chip supply partnership with Qualcomm Incorporated (NASDAQ:QCOM).
Chinese EV stocks also advanced amid broader increases in local technology stocks, which saw the Hang Seng index rally more than 1.5%.
The four firms logged record deliveries in the third quarter. While they still lagged Tesla in EV sales, their overall performance was seen as much more robust than that of the U.S. EV maker, which missed quarterly estimates for deliveries.
Tesla will report its third-quarter earnings after the closing bell on Wednesday, with investors bracing for a potentially disappointing performance. The EV maker has been grappling with slowing growth in vehicle sales, and is expected to log its first annual contraction in deliveries this year.
Tesla’s shares were also nursing steep losses in October after the hotly-anticipated reveal of its robotaxi disappointed investors, given that the firm provided few details on how it planned to generate income from the venture.
Tesla is expected to clock third-quarter earnings of $0.5965 per share, on a revenue of $25.4 billion, according to Investing.com estimates.
The EV maker is also grappling with shrinking profit margins amid increased competition in China, which is one of its biggest markets.
Jefferies analysts said in a recent note that Tesla’s gap over Chinese EV makers was steadily narrowing, and that the firm was headed for at least two years of subdued growth.
