XPeng stock surges following strong earnings, production outlook

Yahoo Finance Live checks out Xpeng shares following the EV developer's latest earnings report and production figures.

Video transcript

JARED BLIKRE: All right, my play today is Xpeng rocketing higher, along with the entire Chinese EV space. That's after posting earnings that reflected strong margins, along with favorable production outlook. And let me just pull up the chart here on the YFi Interactive. This is a year-to-date chart. You can see, wow, really, it's still in the bottom end of its range. And this 46% gain today really not looking like a lot.

But back to the earnings. This is despite-- so they kind of jumped over that low-- or stepped over that low bar, despite disappointing on deliveries for the reporting quarter. And the story might not be about Xpeng so much as a huge, huge tailwind that Chinese stocks have enjoyed during the month of November, after just being brutally knocked down for not a year, not year-to-date, but years. And if you take a look at the max chart of Xpeng, we can see the rise and fall there. Just incredible to look at some of these Chinese names.

So I think positioning is strong at the end of the month. Everybody wants to look like they have-- they're holding some of the hot stocks. That would be a lot of these Chinese stocks. If EV's coming back now, maybe there's going to be a Santa Claus rally. So it's nice to see a beleaguered sector get some love, but in the big picture, still really depressed, guys.

Yeah, looking pretty significantly to the downside there, as I'm glancing at your screen, just in terms of what we've seen so far this year. Morgan Stanley, Jared, was out with an interesting note on the heels of this earnings release, saying that at least now, we have clear visibility from the company regarding more competitive models that are going to be launched next year.

Maybe that is going to help restore some of the confidence that had been lost over the last several months. It's hard, though, to really bet and, I think, get a lot of people on board with some of these Chinese companies here listed in the US, just because of the uncertainty that's going on over there.

DAVE BRIGGS: The headline risk is incredible.

SEANA SMITH: Headline risk is huge. We have certainly seen a reversal when it comes to COVID policy. A lot of talk, not so much followthrough on their end in terms of the lockdowns. And that's a massive, massive risk here for investors.

DAVE BRIGGS: Yeah, and Xi Jinping has shown no appetite for straying from that COVID-zero policy. That'll do it, Jared. Thanks for playing.