Rising Shares of Chinese EV Makers

Shares of Chinese electric vehicle manufacturers rose in Hong Kong on Wednesday, as attention shifted to the impending third-quarter earnings report from industry giant Tesla Inc (NASDAQ:TSLA).

Performance of Key Players

NIO Inc (HK:9866), BYD Co (HK:1211), Xpeng (NYSE:XPEV) Inc (HK:9868), and Li Auto (NASDAQ:LI) Inc (HK:2015) saw their shares increase between 1.7% and 7.5%. Li Auto led the gains, following the announcement of a chip supply partnership with Qualcomm Incorporated (NASDAQ:QCOM).

Chinese EV stocks benefited from a broader rally in local technology stocks, which helped the Hang Seng index rise by more than 1.5%.

Delivery Records and Tesla's Status

The four companies reported record deliveries for the third quarter. Despite this, they still lag behind Tesla in overall EV sales, though their performance is considered significantly stronger compared to Tesla, which missed its quarterly delivery estimates.

Tesla is scheduled to release its third-quarter earnings after the market closes on Wednesday, with investors wary of a potentially disappointing report. The company has been experiencing slower vehicle sales growth and anticipates its first annual decline in deliveries this year.

Moreover, Tesla shares have seen substantial losses in October following the much-anticipated announcement of its robotaxi project, which left investors dissatisfied due to a lack of detailed financial projections.

Earnings Expectations and Market Position

According to estimates from Investing.com, Tesla is expected to report earnings of $0.5965 per share with revenues of $25.4 billion.

As competition in China escalates, Tesla has been facing declining profit margins in one of its largest markets. Analysts from Jefferies noted that the competitive gap between Tesla and Chinese EV manufacturers is narrowing, projecting at least two years of subdued growth for the U.S. giant.