- 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 toughest they usually work the neatest,” he said of Chinese electric vehicle makers.
Shares of Nio and other US-listed Chinese electric automotive makers revved up Thursday as Tesla CEO Elon Musk said its largest rival will likely come from China.
“[The] Chinese market is essentially the most competitive. They work the toughest they usually work the neatest,” he said during a call with analysts late Wednesday after Tesla reported record quarterly earnings.
There’s “probably some company out of China because the almost certainly to be second to Tesla,” he added in venturing a guess about which company could possibly 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 cutting war in China, the world’s largest auto market, by reducing prices in October and in January.
The worth changes “really make a difference for the typical 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 greater than 10% during Thursday’s trading session to surpass $161 a share.
Wedbush analyst Dan Ives raised his Tesla price goal to $200 from $175 and said Tesla has a beatable vehicle-delivery goal of 1.8 million in 2023.