Chinese EV Stocks: Xpeng Deliveries Crush Targets, Nio, Li Auto On Tap
Chinese EV companies are gearing to report deliveries for the third quarter, after Nio (NIO) and Li Auto (LI) cut delivery forecasts following a hot sales streak. The emerging rivals to Tesla (TSLA) in China cited twin headwinds to vehicle production from the pandemic and chip shortage.
On Thursday, Nio started selling its ES8 electric SUV in Norway, challenging Tesla outside of China for the first time. The hot EV startup’s initial foray into international markets boosted Nio stock. Xpeng (XPEV) and BYD (BYDDF) also are selling small numbers of EVs in Norway.
If Norwegian customers opt to rent the battery for a monthly fee rather than buy it outright, the ES8 will cost less than a Model Y, according to reports. Tesla dominates EV sales in Norway.
Xpeng reported September deliveries of 10,412 EVs, up 199% vs. a year earlier and 44% vs. 7,214 in August. Q3 deliveries reached 25,666, up 48% vs. Q2 and easily beating Xpeng’s target of 21,500-22,500.
In September, Xpeng sold 7,512 P7 sedans.
Nio, Li Auto On Tap
For Q3, Nio aims to deliver 22,500-23,500 electric vehicles (EVs) after it cut guidance Sept. 1.
To meet the low end of that range, Nio must deliver 8,689 EVs in September. Thus far in Q3, Nio delivered 7,931 EVs in July, up 125% year over year, and 5,880 EVs in August, up 48%.
Li Auto now expects to deliver 24,500 EVs in Q3, after a guidance cut Sept. 20.
So Li Auto must deliver 6,478 EVs in September to match its guidance. So far in Q3, Li Auto delivered 8,589 EVs in July, up 251%, and 9,433 EVs in August, up 248%.
BYD, by far the biggest Chinese maker of EVs, will likely report September sales next week.
Nio Stock, Chinese EV Stocks
Shares of Nio rose 1.4% on the stock market today. Xpeng gained 2.9% and Li Auto stock added 2.2%. The Chinese EV stocks remain well below the 50-day line, as well as under the 10- and 21-day lines, with no buy point in sight, according to MarketSmith chart analysis. China’s Evergrande property group crisis added to woes after the country’s regulators cracked down on tech-driven companies, sparking a sharp sell-off for Chinese stocks.
Chinese EV startups aim to challenge Tesla (TSLA) on home turf and, increasingly, in Europe. Tesla dominates premium EV sales in China and Norway. At the same time, Nio and its peers face increasing competition from homegrown giants, such as BYD.
Tesla stock dipped 0.8%, holding in a buy zone. Tesla could report third-quarter global deliveries as soon as Friday.
BYD stock rose 2.8%, near its 50-day line as it works on a consolidation right at record highs.
In July and August, Li Auto outsold Nio and Xpeng, both of which offer all-electric vehicles. In contrast, Li Auto makes Extended Range Electric Vehicles (EREVs), a type of hybrid EV requiring a smaller battery pack.
A smaller battery means lower production costs. And hybrid EVs ease consumers’ range anxiety, as China starts to develop charging infrastructure.
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