Nio and shares of other China-based electric vehicle makers rebound as strong economic data out of China offsets weak earnings reports

Shares of the China-based electric vehicle maker rose on Wednesday as strong economic data out of China and investor optimism as Hong Kong lifted its mask mandate overshadowed mostly disappointing earnings reports. NIO Inc. NIO stock,
+0.64%
up 1.3% in premarket trade even after the company reported net losses that widened to RMB6.00 billion (US$861.9 million) or 3, from RMB2.22 billion or RMB1.36, RMB 55 per American Depositary Share (ADS) more than doubled per ADS in the same period last year. Excluding one-time items, the adjusted loss per ADS of RMB3.07 was higher than the FactSet consensus loss of RMB1.83 as gross margin declined to 3.9% from 17.2%. Deliveries increased by 60% to 40,052 electric vehicles. For the first quarter, NIO expects sales of between RMB10.93 billion and RMB11.54 billion, down from the current FactSet consensus of RMB17.38 billion, and deliveries of between 31,000 and 33,000 EVs, an increase from 20.3% to 28.1% compared to the previous year. Elsewhere, XPeng Inc.’s stock XPEV,
+3.72%
rose 3.9% in premarket trading after the company reported a bigger-than-expected loss and earnings that fell short of forecasts. Shares LI of Li Auto Inc.,
+1.33%
rose 5.9% as the company reported earnings earlier this week that beat expectations but missed sales. Stock rallies come as China’s Shanghai Composite Index SHCOMP,
+1.00%
up 1.0%, Hong Kong’s Hang Seng Index HSI,
+4.21%
up 4.2% and Futures ES00,
+0.21%
for the S&P 500 SPX,
-0.30%
up 0.3%.