The divergence in financial performance between NIO and XPeng is widening.

Futubull Options Sir

joined discussion · ·

Options Trading Strategy | Nio, XPeng Motors, and Li Auto's Q3 Earnings Reports Have All Been Released! Different Fates, What’s the Next Move?

This article comes from the 'Options Market Insights' column, which aims to position itself at the forefront of investment trends, providing readers with insights into market opportunities and teaching them how to seize these opportunities using options. If you are interested, feel free to subscribe.Click hereJoin the learning experience, and you will receive notifications when subsequent updates to the column are published.

$NIO Inc (NIO.US)$ 、 $XPeng (XPEV.US)$ and $Li Auto (LI.US)$ As representatives of the new energy 'new forces in car manufacturing,' these three brands were established around the same time and have risen to become significant players in China's electric vehicle market by leveraging internet-based thinking and user-centric marketing models. Collectively referred to as 'Nio, Xpeng, and Li Auto' within the industry, all three have achieved dual listings in Hong Kong and the United States.

With $BYD COMPANY (01211.HK)$ 、 $GEELY AUTO (00175.HK)$ Traditional automakers such as Huawei and $XIAOMI-W (01810.HK)$ the entry of tech companies has intensified competition in the new energy vehicle sector in recent years. By November 26, ahead of the US stock market opening, Li Auto had released its earnings report, completing the disclosure of financial results for all three automakers.

How have the performances of the three automakers been, and why have they shown varying performances in the capital markets recently? What strategies are available for consideration?

XPeng Motors: Boosted by AI and robotics, losses have significantly narrowed, becoming the "standout performer."

$XPeng (XPEV.US)$ It is currently in a period of multiple favorable factors, achieving significant progress in financial performance, new industry layout, and industry cycles alike. Among the trio of Nio, Xpeng, and Li Auto, it has become the company with the most outstanding recent stock price performance.

XPeng Motors released its Q3 earnings report last Monday. In the third quarter of this year, XPeng's total revenue reached RMB 20.38 billion (RMB, hereafter), representing a year-over-year increase of 101.8%. The overall gross margin reached 20.1%, up 4.8 percentage points year-over-year. Net losses significantly narrowed to RMB 380 million, decreasing by 78.9% from the same period last year, bringing the company close to breaking even.

In terms of vehicle models, the company has announced plans to launch seven extended-range models by 2026, with three of these models scheduled for release in the first quarter of next year. The first extended-range model, X9, was recently unveiled.This marks the end of XPeng's history of producing only pure electric vehicles, entering an era of operating both 'pure electric' and 'extended-range' models concurrently.。

Beyond its core automobile business, XPeng's investments in various new technologies are starting to bear fruit. The company hosted its annual AI Day at the beginning of November, detailing its latest advancements in artificial intelligence.Including products such as the VLA 2.0 AI large model, autonomous taxis (Robotaxi), humanoid robots, and flying cars.

Among these, the humanoid robot IRON has become a star product, featuring a human-like spine and muscle structure, walking with highly anthropomorphic "catwalk" and "moonwalk" gaits that are light and natural.To the extent that after the launch event, He Xiaopeng had to clarify and prove that there was no real person inside.

The company’s stock price surged over 16% on November 10 and subsequently reached a three-year high. Following this, as market volatility increased and AI trading cooled, the stock price experienced some pullback. As of now, XPeng Motors remains the company with the highest market capitalization among Nio, XPeng, and Li Auto.

However, it is important to note that investor expectations for XPeng Motors are also relatively high.Investors are not only focused on current sales and profits but are also paying attention to whether subsequent AI technologies can be transformed into sustainable competitive advantages, as well as the progress of businesses such as Robotaxi.Overall, XPeng's core business (vehicle manufacturing) has shown signs of stabilization, while its AI and robotics businesses offer significant room for imagination. The recent stock price fluctuations essentially reflect the market reassessing and balancing between its short-term performance and long-term value.

From a technical perspective, after Tuesday’s rebound, the stock price regained its position above the 120-day moving average. The stock has not broken below the upward channel, and further attention should be paid to whether the ascending trend formed by several lows in April and July-August can be maintained.

(The design images displayed on the screen are for illustrative purposes only and do not constitute any investment advice or guarantees.)

Volatility analysis tools indicate that XPeng’s implied volatility is at a relatively low level, which is theoretically advantageous for option buyers. For investors with a higher risk appetite who are optimistic about XPeng's future development, directly purchasing options could be considered.Call, leveraging the characteristics of options to amplify potential returns.

If you wish to reduce the cost of purchasing, you may also considerBull Call Spread,which involves selling an additional call option with a higher strike price on top of purchasing a call option. This lowers the cost of buying but also caps the potential for higher returns.

(The design images displayed on the screen are for illustrative purposes only and do not constitute any investment advice or guarantees.)

Nio: Lower price points bring incremental volume, but profitability concerns persist.

$NIO Inc (NIO.US)$ The price range of the original main brand NIO has consistently remained above 300,000 yuan.but this year, two newly added sub-brands, ONVO and Firefly, have contributed significant incremental sales for the company.

ONVO’s price range has been lowered to the 200,000-300,000 yuan interval, while Firefly has further pushed down closer to around 100,000 yuan. Both brands inherit Nio's signature battery swap function, and if the BaaS (Battery as a Service) rental plan is adopted, the entry barrier for purchasing will be further reduced.

In the third quarter, the Nio brand delivered 36,900 vehicles, while the Lode brand delivered 37,700 vehicles, surpassing the main brand’s delivery volume.Firefly's deliveries also exceeded 10,000 units, reaching 12,500 vehicles.

The company's Q3 financial report released before the market opened on the 25th showed improvements in key financial metrics. In terms of revenue, total income in the third quarter was RMB 21.79 billion, a year-on-year increase of 14.7%. The per-vehicle cost decreased by RMB 12,000 sequentially, demonstrating economies of scale from the new model platform.

The gross margin for automobiles surged to 14.7%, up 4.4 percentage points quarter-on-quarter, with the overall gross margin also rising to 13.9%. The company provided an optimistic outlook for the fourth quarter, expecting deliveries to reach between 120,000 and 125,000 vehicles, corresponding to revenue in the range of RMB 32.76 billion to RMB 34.04 billion.

However, it is worth noting that the company's profitability remains under pressure. Although the net loss narrowed in Q3, it still recorded a net loss of RMB 3.48 billion.Chairman Li Bin stated during the earnings call that the company’s operational target for 2026 is to achieve full-year profitability.

Following the release of the earnings report, the company’s pre-market share price initially surged over 9%, but quickly reversed course and closed down more than 4% on the same day.As the multi-brand strategy continues to advance, the market is expected to shift focus from scale to profitability.

With increasing volumes from new brands, Nio’s stock experienced a doubling since July, peaking in October before undergoing continuous corrections. Recently fluctuating near the 120-day moving average, further observation will determine whether it can consolidate and stabilize around this level. Additionally, attention should be paid to whether the potential support level at $5.2 can hold.

Nio’s current implied volatility remains at historically low levels (IV Rank 10, IV Percentile 8%), which is advantageous for option buyers. Considering the ongoing market uncertainty regarding the balance between 'scaling' and 'profitability,' if the stock’s direction is unclear but increased volatility is anticipated, one may consider adoptingBuy a Long Straddle or Long Strangle options strategy.

These strategies involve buying both Call and Put options, generating profits as long as the stock price deviates significantly from the strike price. When market consensus is mixed or volatility expectations are high, such strategies can capture opportunities in both upward and downward directions, avoiding the risk of one-sided bets.

Ideal: Recall impacts turning from profit to loss, when will it stabilize?

$Li Auto (LI.US)$ Since the end of September, the stock has been continuously adjusting. The launch of the new all-electric model i6 also failed to reverse the share price, as the company is currently undergoing a challenging transition period marked by intensifying competition and the shift between old and new products. Today (November 26), before the U.S. stock market opened, Li Auto also released its third-quarter earnings report.

Total deliveries for the third quarter of 2025 amounted to 93,200 vehicles, representing a year-on-year decrease of 39.0%.Li Auto has long been known for its extended-range technology and family-oriented customer base. However, its mainstay models such as the L8 and L9 have faced direct competition from rivals like Huawei's M8, which has diverted demand from Li Auto’s premium vehicle segment.

Starting with the MEGA in 2024, Li Auto began transitioning from extended-range to fully electric models. The i8, launched in July 2025 as its first all-electric SUV, underperformed market expectations, while the i6, released at the end of September, was highly anticipated. Despite strong order performance, production capacity and delivery remain in the early stages, with incremental volume yet to be fully reflected in overall sales figures.

Total revenue for the third quarter of 2025 was RMB 27.4 billion, marking a year-on-year decline of 36.2%; net profit turned into a loss, with a net loss of RMB 624 million compared to a profit of RMB 2.8 billion in the same period last year.Notably, Li Auto has long been the only company among Nio, XPeng Motors, and itself that achieved consistent profitability.

The primary reason affecting net profit was the provision for losses caused by the MEGA recall incident.The gross margin for the third quarter was 16.3%, compared to 21.5% in the same period last year. The company stated that excluding the impact of estimated costs related to the MEGA recall, the gross margin would have reached 20.4%. On the other hand, consolidating losses within a single quarter also positions the company favorably to 'move forward with less burden' in the future.

The next focus of the market may shift to the actual delivery data of the i8 and i6 models, rather than just order numbers, to assess whether production ramp-up can keep pace and whether market acceptance of pure electric models meets expectations. This will determine whether Li Auto’s second growth curve can be successfully initiated. Additionally, it remains uncertain whether competition intensity for existing models will ease.

From a technical perspective, after breaking below the MA250 bull-bear demarcation line, Li Auto failed to stage an effective rebound. Following consecutive pullbacks, the stock has already touched the bottom range formed in 2024.If the decline continues, it may test the lows set near October 2022.

If you believe that Li Auto may form a bottom soon, you could consider adoptingCash Secured Putstrategy near the current price. If the stock price falls below this range at expiration, you can purchase the corresponding amount of Li Auto shares at your target price. If the price remains above it, you can pocket the premium.

It is important to note that this requires maintaining sufficient cash in your account to cover potential share purchases if the Put option is exercised. Insufficient funds may lead to reliance on margin financing or affect the liquidity of your account.

Finally, here’s a small perk for fellow investors. Welcome to claim it!Options Beginner's Package

This event is exclusively available to HK invited users. Click to learn more.Detailed event rules>>

Market conditions are complex and volatile,Options StrategyToo many options and not sure how to choose? Futubull helps you build in three easy steps,Options Strategymaking investing simple and efficient from now on!

Disclaimer

This content does not constitute any offer, solicitation, recommendation, opinion, or guarantee regarding securities, financial products, or tools. The risk of loss in trading options can be substantial. In certain circumstances, the losses you incur may exceed the initial margin deposited. Even if you have set contingency orders, such as “stop-loss” or “limit” orders, these may not necessarily prevent losses. Market conditions may render such orders unexecutable. You may be required to deposit additional margin within a short period. If you fail to provide the required amount within the specified timeframe, your open positions may be liquidated. However, you will still be responsible for any shortfall in your account resulting from such liquidation. Therefore, before engaging in options trading, you should thoroughly study and understand options and carefully consider whether such trading is suitable for you based on your financial situation and investment objectives. If you trade options, you should familiarize yourself with the procedures for exercising options and the rights and obligations upon exercise or expiration of options.

299

411K Views