While the power struggle between electric vehicle (EV) manufacturers continues on U.S. soil, Chinese EV stocks are trying simply to hold their heads above water. The industry has been at the mercy of an increasingly regulation-heavy Chinese Communist Party (CCP) government. And today, as the chip shortage continues to wreak havoc on big tech manufacturers, some Chinese EV plays are doing worse than others.

What Happened With Chinese EV Stocks?
East Asian electric auto manufacturers are all being bogged down by recent reports out of the major camps. It appears that the semiconductor shortage hit some harder than others; as the market opens this morning, Li Auto (NASDAQ:LI) is the only major play moving sideways as others move down. That’s because Li delivered the only satisfactory delivery data this morning across the industry of Chinese EV stocks.
Nio’s (NYSE:NIO) delivery update for the month of August is proving unsatisfactory. While Nio saw a 48% year-over-year increase in deliveries for the month, the chip shortage has kept the company from being able to meet the full demand for its vehicles. As such, it is trying to manage investors’ expectations for the Q3 earnings sheet. It’s doing this by slashing projected deliveries from 25,000 to around 22,500.
At the same time, Xpeng Inc. (NYSE:XPEV) is losing after tripling on its August deliveries year-over-year. While it didn’t say outright that this is a product of the shortage, the company says there is a “shift in its manufacturing base” that is affecting deliveries. Li Auto appears to be the only company that remains unshaken by the supply chain issues. The company outperformed both Nio and Xpeng in terms of deliveries for the second straight month; it is seemingly immune to the same supply chain issues as its peers.
Why It Matters
The situation with semiconductor manufacturing is a huge heel to an industry that, compared to other auto sectors, is still in its infancy. In addition to limiting deliveries, the news today is sending Chinese EV stocks into disarray.
After trading down over 6.5% in pre-market, NIO stock is opening the day with a 2.5% loss. The company has also seen over 16 million shares swap hands in the opening minutes of the day’s trading session. Meanwhile, XPEV is suffering similar losses. The company is trading down over 2%. However, it is already trading heavily just minutes into the day. LI stock is the only one seeing a green candle. Thanks to its optimistic report, the stock is gaining 1.5% at the market’s open and seeing heavy volume.