Nio, XPeng And Li Auto Shares Are Trading Lower: What's Going On?

Shares of several China-based EV makers including NIO Inc NIO, XPeng Inc XPEV and Li Auto Inc LI are moving lower Thursday after Tesla Inc TSLA reported weak third-quarter financial results. 

What To Know: Tesla missed analyst estimates on both the top and bottom line for the first time since the second quarter of 2019, according to Benzinga Pro.

Tesla reported third-quarter revenue of $23.35 billion, up 9% year-over-year, but below the consensus estimate of $24.38 billion. The EV maker said its top-line results were negatively impacted by lower average selling prices. 

Tesla reported adjusted earnings per share of 66 cents, which missed estimates of 73 cents. Operating margins came in at 7.6% for the quarter.

Third-quarter production totaled 430,488 units, which was lower than anticipated due to planned downtimes for factory upgrades. 

Tesla did note that Cybertruck pilot production began in the third quarter and deliveries are expected to start next month, but on a conference call following the print, Tesla CEO Elon Musk warned that it will take some time for the vehicle to be a "significant cash flow contributor." Musk also expressed concerns about consumer willingness to purchase vehicles in the current high interest rate environment.

Tesla's disappointing quarterly results are weighing on several EV companies including Nio, XPeng and Li Auto. Tesla introduced multiple rounds of price cuts this year, especially in China where competition is quickly intensifying. China is currently the world’s biggest EV market.

Check This Out: Tesla Q3 Earnings Highlights: Revenue Miss, EPS Miss, Cybertruck Launch Set For November And More

NIO, XPEV, LI Price Action: At publication time, Nio shares were down 1.96% at $7.76, XPeng shares were down 2.83% at $13.41 and Li shares were down 2.2% at $32.03, according to Benzinga Pro.

Photo: courtesy of Nio.