Chinese EV stocks are revving up ahead of trading on Tuesday as deliveries in May show car buyers in the world’s second-largest economy are ready to ride. Xpeng (NYSE:XPEV) is leading the pre-market gains, with XPEV stock is up 4.73% at 8 a.m. Eastern.
Nio (NYSE:NIO) stock was up 3.88% after the Shanghai-based firm said it delivered 6,711 in May, nearly double the number of vehicles a year earlier. The company said cumulative deliveries of its ES8, ES6 and EC6 models as of May 31, 2021, reached 109,514.
Xpeng, the smaller of the three manufacturers, delivered 5,686 vehicles last month, a 483% increase year-over-year, according to its press release. That brought the number of deliveries for the year to 24,173, a 427% YOY jump. Just two weeks ago, the Guangzhou, China company said it expected to deliver between 15,500 and 16,000 vehicles in the second quarter. It delivered 13,340 cars in the first three months of the year, topping its forecast for 12,500 cars.
Chinese EV Stocks Wobbled on Chip Shortage Reports
The electric vehicle space is one driven by what have been some pretty seamless global supply chains for batteries, chips and other key components. However, certain EV stocks have taken a beating of late as supply chain disruptions have wreaked havoc on this sector. The global chip shortage is an issue that the entire industry faces.
Nio said vehicle delivery was down for several days due to the volatility of semiconductor supply and certain logistical adjustments. Based on the current production and delivery plan, the company will be able to accelerate the delivery in June to make up for the delays from May. Management maintained its delivery guidance of 21,000 to 22,000 vehicles in the second quarter.
Xpeng, unlike many of its peers, expects to come out of this disrupted supply chain environment relatively unscathed. In fact, the company is ramping up production, planning to build a 733,000 square meter factory with an annual capacity of 100,000 vehicles in Wuhan, China.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor.