Why Are Chinese EV Stocks NIO, XPEV, LI in Focus Today?

  • Nio (NIO) had the highest quarterly deliveries among the trio with 31,607 vehicles.
  • However, Li Auto (LI) had the highest September deliveries with 11,531 vehicles.
  • XPeng (XPEV) has the largest decline within the group, with XPEV stock down over 70% year-to-date.
Chinese EV stocks - Why Are Chinese EV Stocks NIO, XPEV, LI in Focus Today?

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Shares of Chinese electric vehicle (EV) stocks Nio (NYSE:NIO), XPeng (NYSE:XPEV) and Li Auto (NASDAQ:LI) are in focus after the three companies released their delivery figures for September and the third quarter. XPeng and Nio’s Q3 deliveries came below internal expectations, while Li Auto beat by about 1,100 vehicles.

Like the rest of the market, Chinese EV stocks have been battered this year, with XPEV stock having the largest decline of more than 70%. Furthermore, China’s “Zero Covid” policy has sent many cities into lockdown, exasperating supply chain issues and weakening consumer demand and store traffic. Meanwhile, Tesla’s (NASDAQ:TSLA) disappointing Q3 delivery figure is sending shares of EV companies lower as well.

Let’s get into the details of September’s deliveries.

Chinese EV Stocks NIO, XPEV, LI Deliveries

During the third quarter, Nio delivered a total of 31,607 vehicles, a record quarterly high and up 29.3% year-over-year (YOY). Deliveries of the ET5 started in late September and total deliveries of all models were 10,878 vehicles for that month. In addition, the most popular vehicle sold during September was the ET7 sedan with 2,928 deliveries.

Investors will also want to keep the company’s Nio Berlin 2022 event in mind, which will occur on Oct. 7. At the event, Nio will introduce its ET5, ET7 and ES7 models to the European market, paving the way for further sales.

During September, Li Auto delivered 11,531 vehicles, the highest among the trio and up 62.5% YOY. Furthermore, September’s deliveries more than doubled the figure from August. The monthly deliveries included 10,123 Li L9 SUVs in their first full month of deliveries. For the quarter, deliveries totaled 26,524 vehicles, up 5.6% YOY. The company added:

“Our delivery of over 10,000 Li L9s in September marks the first time a domestic branded premium model priced above RMB400,000 has achieved this monthly delivery milestone, establishing Li L9 as one of the top choices of full-size SUV for family users in China.”

Last up is XPeng. For the quarter, the EV company tallied in 29,570 deliveries, of which 8,468 deliveries were attributed to September. The most popular vehicle sold during that month was the P7 sedan with 4,634 deliveries.

XPeng also recently announced the launch of its City NGP (Navigation Guided Pilot), which is an advanced driver assistance system (ADAS) for urban driving. The pilot program is currently only active in Guangzhou, although it is still a notable milestone for the Chinese EV company.

On the date of publication, Eddie Pan did not hold (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.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


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