NIO shares soar in Hong Kong despite earnings miss

NIO Inc. 9866,
Shares soared in Hong Kong, tracking Wall Street’s overnight gains as slower-than-expected US inflation boosted markets and helped investors ignore manufacturer gains Chinese electric car.

Shares rose as much as 19% on Friday and were up 13% at HK$79.30 (US$10.11) by midday, on track for one of their biggest gains ever. NIO shares that trade in the United States NIO,
ended up 12% at US$10.34.

Other Chinese EV makers also rose. Li Auto Inc. 2015,
added 7.2% and XPeng Inc. 9868,
it was 6.3% higher.

The gains capped a volatile week for NIO, which fell 25% in three straight sessions before Friday’s change.

Analysts say the rally is likely the result of rising hopes for a less brutal stance from the Fed after October data showed U.S. consumer price increases were slower than expected. ‘I expected.

High-growth stocks like NIO are particularly sensitive to market expectations about changes in interest rates. “I’m not surprised by the CPI bomb for NIO today,” said US Tiger Securities analyst Bo Pei.

NIO on Thursday reported a wider-than-expected loss for the third quarter due to higher battery costs and sales expenses.

But investors were willing to look beyond the results given improving macroeconomic signals and NIO’s ambitious guidance for the final quarter of the year.

“On the positive side, the company set an encouraging sales target for the fourth quarter,” Citi analysts said in a note.

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