Chinese language electric-vehicle maker Xpeng noticed its shares in Hong Kong surge over 10% Thursday following upbeat earnings and stronger-than-expected income forecast for the second quarter.

Its shares soared as a lot as 10.2% to 85.5 Hong Kong {dollars} ($10.86), and had been final buying and selling 7% increased, taking year-to-date features to 78%.

The Guangzhou-based carmaker’s first-quarter income greater than doubled from a 12 months earlier, pushed by strong gross sales.

Xpeng stated it delivered 94,008 automobiles within the first three months this 12 months, greater than 4 occasions the gross sales quantity a 12 months earlier.

That improved prime line helped slender its web loss for the primary quarter to 664 million yuan, in comparison with 1.37 billion yuan a 12 months in the past, and lifted its gross margin to fifteen.6% for the quarter from 12.9% a 12 months earlier.

The corporate is a key participant in China’s hypercompetitive EV market, however has struggled to show a revenue amid rising competitors and sluggish home demand.

Analysts broadly count on Xpeng will possible flip worthwhile within the fourth quarter this 12 months, due to its sturdy gross sales momentum and pipeline of recent fashions.

The corporate has launched a number of new merchandise, together with the mass-market model MONA final August and a renewed flagship mannequin X9, that includes superior autonomous driving system.

The automaker stated it goals to start mass manufacturing of automobiles geared up with Degree 3 autonomous driving options in China by year-end, a major improve from the at the moment extra widespread Degree 2 programs.

For the second quarter, Xpeng stated it anticipates a income of 17.5 billion yuan to 18.7 billion yuan, in contrast with consensus forecast of 17.2 billion yuan, in line with information compiled by LSEG.

It expects to ship 102,000 and 108,000 of electrical vehicles within the second quarter — a leap of round 237.7% to 257.5% from a 12 months earlier.

That optimistic incomes forecast lifted investor sentiment, sending Xpeng’s U.S.-listed shares 13% increased to shut at $22.25, powering a year-to-date rally of over 88%. Nonetheless, it’s effectively off its document of greater than $72 apiece hit in November 2020, in line with LSEG information.

Rival BYD has seen shares in Hong Kong surge over 74% to this point this 12 months, Li Auto has risen greater than 22%, whereas NIO has misplaced over 11%.

— CNBC’s Arjun Kharpal contributed to this story.