. . World news – US – Nio is the latest Chinese electric car maker to announce its profits. Can Li and XPeng be outdone?

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The rise in the share price of U. s. – The listed Chinese electric car makers get another big test Tuesday evening when they were the third of the three companies,

NIO,

Reports of the third quarter results.

NIO shares (index: NIO) are up 57% over the past month and 245% over the past three months, crushing similar returns from

Dow Jones Industrial Average

And the

500 products

On the same periods.

Strong performance may mean more volatility after earnings are reported. Options markets indicate a move of 15% to 20%, up or down, after the numbers are released. NIO shares traded lower after each of the previous three earnings reports. However, it jumped 54% after the company announced its third-quarter 2019 earnings, to $ 3. 78 servings of 2 dollars. 43.

NIO is now trading at around $ 45. 50 and has a market capitalization of more than $ 61 billion, more than

General Motors

(GM).

Analyst Target Prices don’t help much in trying to guess where NIO stocks are trading. The average target price has risen nearly 130% over the past three months, but that hasn’t kept up with the stock. Analyst’s Average Target Price indicates a drop of about 43%. There has been little correlation between target prices and the stock over the past two years.

It may be difficult for investors to see stocks rise after earnings, but Chinese electric car stocks tend to surprise investors. stocks

XPeng

(XPEV) jumped 33% after the company announced its third-quarter numbers on Thursday.

An XPeng peer

Li Auto

(LI) decreased 1. 8% after reporting earnings the next day. However, Li’s stock jumped 27% on the day XPeng mentioned. On top of that, Li’s shares jumped nearly 15% on Monday after Citigroup analyst Jeff Chung upgraded the shares to Buy from Hold.. Li shares had already risen 61% in the month prior to the stock upgrade.

All major price movements have left the Chinese electric vehicle sector trading at or near all-time highs. NIO stocks are trading at around 15 times the estimated 2021 sales. XPeng and Li trade for about 12 and 16 times the estimated 2021 sales, respectively.

Tesla

(TSLA), for comparison, is trading about 9 times the next year’s sales. When Tesla was the size of the NIO, it was trading at nearly twice the next year’s estimated sales. That was nearly a decade ago and a lot has changed in the electric vehicle industry since then.

NIO’s 50-day moving average is around $ 26 a share. This is the level of technical trading that investors can view. The stock has traded well above its 50 day moving average since early June.

NIO has scheduled the conference call at 7 a.m.. M. Eastern Time, after the release of earnings. Investors and analysts will be eager to learn more about new products and the health of the Chinese auto market.

Investors will also want to know the deliveries in the last quarter of the year. The company delivered more than 5,000 cars in October, its best month ever. Both XPeng and Li provided guidance for fourth quarter deliveries.

NIO delivered 12,206 vehicles in the just-ending third quarter. Investors are likely to expect, at least, that NIO will outperform that in the fourth quarter.

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NIO, Stock, Earnings, NYSE: NIO, Tesla, Inc.