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Chinese EV stocks rise as Elon Musk says he sees Tesla’s biggest rival coming from China after the company posts record results

A XPeng P7 electric car is on display at a XPeng experience store in Shanghai, China.XPeng’s P7 car.

Wang Gang/VCG via Getty Images

  • Shares of Chinese EV makers rose Thursday after Tesla reported record quarterly profit. 
  • Tesla CEO Elon Musk said he believes his company’s biggest rival could come out of China. 
  • “They work the hardest and they work the smartest,” he said of Chinese electric vehicle makers. 

Shares of Nio and other US-listed Chinese electric car makers revved up Thursday as Tesla CEO Elon Musk said its largest rival will likely come from China. 

“[The] Chinese market is the most competitive. They work the hardest and they work the smartest,” he said during a call with analysts late Wednesday after Tesla reported record quarterly earnings. 

There is “probably some company out of China as the most likely to be second to Tesla,” he added in venturing a guess about which company could be Tesla’s largest competitor. 

Alongside a rally in Tesla shares, Nio stock gained 3.2%, Li Auto charged up 7%, XPeng advanced by 3.4%, and BYD gained 4.8%. Investing legend Warren Buffet has a stake in BYD, whose models include the Song compact SUV

Tesla, whose lineup includes Model Y and Model 3 vehicles, jumpstarted a price war in China, the world’s largest auto market, by reducing prices in October and in January. 

The price changes “really make a difference for the average consumer,” Musk said in his call with analysts.

Tesla posted a record fourth-quarter profit of about $3.7 billion. Its per-share earnings of $1.19 were higher than a Refinitiv consensus forecast of $1.05. 

Tesla shares climbed by more than 10% during Thursday’s trading session to surpass $161 a share. 

Wedbush analyst Dan Ives raised his Tesla price target to $200 from $175 and said Tesla has a beatable vehicle-delivery target of 1.8 million in 2023.

Read the original article on Business Insider