Li Auto Stock falls on disappointing Q2 earnings; Nio Stock falls in turn

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Li Auto (LI) today announced its unaudited second quarter financial results. Its revenue disappointed: at $1.30 billion, it was an 8.7% decline from its Q1 2022 earnings. Although revenue jumped 73.3% from Q2 2021, Investors still reacted by selling the stock, and the stock is down 5.1% in premarket trading.

Nio, (NIO) also a Chinese electric vehicle company, is also seeing sell action on its shares in premarket trading. Investors appear to be worried that Nio will perform poorly when it reports second quarter results next month, so the stock is down 2.2% at the time of writing.

Is NIO or LI a better buy?

Analysts have equally positive outlooks on NIO and LI stocks. However, LI might be a slightly better buy, with a Smart Score of 9 against NIO’s Smart Score of 8.

Analysts have been bullish on LI stock, with all five analysts rating the stock over the past three months giving it a buy. The stock benefits from a Strong Buy analyst consensus, representing upside potential of 57%. It remains to be seen how analysts will react to the second quarter earnings results.

NIO stock is also a strong buy, according to the 11 analysts who have rated the stock over the past three months. Nio also has an upside potential of 57%.

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