Shares in Nio (NYSE: NIO) accelerated as much as 8% by midday Thursday on delivering more cars than it expected for March and the first quarter.
The Shanghai-based electric vehicle maker said today that it delivered 7,257 vehicles in March, up 373% year-over-year. For the entire quarter, Nio’s deliveries surged 423% year-over-year to 20,060 vehicles. Late last week, Nio anticipated that it would deliver around 19,500 vehicles for the first three months of the year. Likewise, Nio’s last few days of March must have been much stronger than it originally thought.
Also, Nio’s EV rival XPeng (NYSE: XPEV) reported deliveries of its own today. Guangzhou-based XPeng said it delivered 13,340 vehicles for the March quarter, representing a 487% jump from the same period of the preceding year. On the news today, XPeng was trading as high as $39.24 per American depositary share, 7% higher from Wednesday’s close.
Wedbush analyst Dan Ives cheered the news and called the first-quarter deliveries of Nio and XPeng “robust.”
In the past month or so, shares in both EV players have been extremely volatile. The volatility can be attributed to trade war tensions between Beijing and Washington worsening and investors shying away from growth stocks on fears of interest rates spiking. Plus, Nio announced last week that it would suspend production at its Hefei manufacturing plant for “five working days” beginning on Mar. 29 because of a semiconductor shortage, which has been an industry-wide problem.
But this has been a solid week so far for both Nio and XPeng. Both stocks have been given a boost not only on today’s strong deliveries but on Joe Biden’s $2 trillion infrastructure plan.
“We continue to believe EV stocks move 30% to 40% higher the rest of the year as the Street further digests this transformational growth on the horizon," Ives said, as cited by Market Insider today.
Next up in the EV space, Wall Street will be waiting for Tesla (Nasdaq: TSLA) and Li Auto (Nasdaq: LI) to post their vehicle delivery figures in the coming days.