Chinese EV Stocks: Why LI, XPEV, NIO Stocks Are Revving Up Today

Investors are focused on Chinese EV stocks on Thursday morning, as June and second-quarter delivery stats emerge. Nio (NYSE:NIO) stock looks set to extend this week’s gains after announcing deliveries more than doubled last month compared to June 2020.

Concept art of an electric vehicle with a charging cord coming out.

Source: Shutterstock

The share price of Xpeng (NYSE:XPEV) stock is up more than 4% in pre0market trading, as Li Auto (NASDAQ:LI) is up 1.89%.

Shanghai-based NIO said it delivered 8,083 of its electric vehicles in June, bringing the Q2 total to 21,896 vehicles and cumulative deliveries of its models ES8, ES6 and EC6 to 117,597 units. The June record results build on May’s 6,711 delivered vehicles.

China sold 10.88 million vehicles between January and May, up 36% from the same period a year earlier, according to Reuters. A global chip shortage and surging raw material prices are having an increasing impact on automakers in the country.

Chinese EV Stocks: XPEV, NIO Are Making Big Moves

Right now, 2021 is set to be a breakout year for EVs, as investors and automakers remain optimistic about the future. While the tech selloff and global chip shortage have put pressure on prices, EV makers still show a lot of runway for growth, InvestorPlace contributor Divya Premkumar noted on June 11.

Xpeng recorded its highest-ever number of monthly deliveries in June, at 6,565 Smart EVs, a 617% increase YOY, and a 15% increase over May. That volume helped make for a quarterly record 17,398 deliveries in Q2 2021, a 439% increase YOY.

On Wednesday. the Guangzhou firm became the first Chinese EV producer to finish a so-called homecoming share sale, raising about 14 billion HKD ($1.8 billion) in its Hong Kong listing. The XPEV stock listing in Hong Kong comes as the Chinese firm seeks a hedge against the risk of U.S. delisting.

Chinese carmakers became beneficiaries of a global shortage of semiconductors, with their outbound shipments more than doubling as American and European rivals fell behind, said Cui Dongshu, secretary general of the China Passenger Car Association (CPCA).

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 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. His Substack newsletter, TLV Strategist, covers the Israel business scene.

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