Chinese electric vehicle (EV) stocks were powering higher this morning after better-than-expected delivery numbers for the month of November.
Li Auto (NASDAQ:LI), Nio (NYSE:NIO) and Xpeng (NYSE:XPEV) were each up more than 3% in today’s pre-market session. This came after the November delivery numbers surprised on the upside, showing that demand is growing for electric vehicles in the world’s most populous country.
Investors should note that despite a strong start, some of these Chinese EV stocks have cooled off. In fact, as of this writing, XPEV stock is down 2%.
What Happened With Chinese EV Stocks
Chinese electric vehicle manufacturer Nio reported that it delivered 10,878 vehicles in November, up 105.6% year over year. The latest delivery numbers include 2,683 ES8s, 4,713 ES6s and 3,482 EC6s. Cumulative deliveries for 2021 reached 80,940 vehicles, up 120.4%.
At the same time, Xpeng Motors announced that it delivered 15,613 EVs in November, up 270% year over year. That included 7,839 Xpeng P7s and 5,620 Xpeng G3s. Xpeng began mass deliveries of the P5 in October, and reported deliveries of 2,154 units in November.
And, Li Auto announced that it delivered 13,485 Li ONEs in November, up increase of 190.24% YOY. From January to November 2021, it delivered 76,404 units.
All of China’s electric vehicle makers report their delivery numbers on the first day of each month.
Why It Matters
In addition to demonstrating that demand for electric vehicles is picking up in China, the strong November delivery numbers show that Chinese EV manufacturers are managing to continue producing and delivering despite a global chip shortage.
Experts estimate that this shortage will cost the automotive industry $210 billion in lost revenue this year. The Chinese EV companies appear to be bucking the trend and managing to keep production at a brisk pace heading into year end. The latest delivery figures also show that many of China’s EV manufacturers are ramping up their production levels despite continued challenges posed by the Covid-19 pandemic.
Electric vehicle stocks have been outperforming the broader market since U.S.-based Rivian (NASDAQ:RIVN) held its highly anticipated initial public offering on Nov. 10.
As a group, Chinese EV stocks look poised to move higher today, which is good news for shareholders. The latest delivery figures show that EV makers in the nation of 1.4 billion people are maturing and ramping up production significantly from a year ago. This growth is exciting news for the industry and investors who want to gain exposure to the fast moving market for Chinese auto manufacturers.
On the date of publication, Joel Baglole 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.