What happened Stocks in many areas of the electric vehicle (EV) sector have been active for the last few weeks since Rivian Automotive made a big splash with its initial public offering (IPO). Chinese EV maker Nio (NYSE: NIO) reported its third-quarter earnings the day prior to that IPO, and investors seemed to be content with that report. Today, the stock initially popped after a competitor reported its third-quarter results. Nio's American depositary shares (ADS) jumped 3% in early trading Monday, but lost those gains with a decline of 1% as of 10:45 a.m. ET. So what Today's early jump came after Li Auto reported it more than tripled its revenue in the third quarter compared to the prior-year period. It also delivered more vehicles in the quarter than Nio for the first time. That news could be deemed both good and not so good for Nio, however, helping to explain today's stock moves. Image source: Nio. Now what Li's new-energy vehicle doesn't compare directly to Nio's offerings. The Li One SUV includes a small gasoline engine onboard that can be used to recharge its batteries, allowing for longer travel between charging stations. But its growing sales do reflect the growing interest in electric vehicles in China. Nio should directly benefit as that market continues to grow, but that's not all Nio is counting on. While Nio delivered slightly fewer vehicles than Li in the third quarter, it had total revenue of about $1.5 billion compared to Li's total of about $1.2 billion. Some of Nio's additional revenue comes from its battery-as-a-service offering where customers can save money on vehicle purchases in exchange for a subscription to its battery swap option. And Nio's strategy goes beyond China. Nio is also expanding into Europe, and launching new products next year, including the highly anticipated ET7 luxury sedan. Today, investors interpreted Li's results as both a positive and negative for Nio, but the business itself will dictate how shares trade over the long run. 10 stocks we like better than NIO Inc.When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and NIO Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Howard Smith owns shares of NIO Inc. The Motley Fool owns shares of and recommends NIO Inc. The Motley Fool has a disclosure policy.Source