The Chinese electric vehicle trio posted strong deliveries for April over the weekend but saw their stocks fall nevertheless on Monday.
Shanghai-based Nio (NYSE: NIO) delivered 7,102 vehicles in April, representing an increase of 125% from the same time last year. Li Auto (Nasdaq: LI) watched its deliveries rise 111% year-over-year to 5,539 units. The Beijing-based company has only one production model, the Li ONE.
XPeng (NYSE: XPEV) experienced the most rapid growth in the quarter, with deliveries accelerating 285% year-over-year to 5,147 units.
Shares in XPeng and Li Auto both declined 2%, respectively, in early trading Monday. The only gainer was Nio, whose stock was up 10 cents from Friday’s close.
Despite the strong deliveries, investors continue to be cautious on EV players; an industrywide chip shortage continues to cause problems for automakers. Specifically, Nio chairman and chief executive officer William Li has warned that the chip shortages could cut monthly production capacity from 10,000 to 7,500 vehicles. In a post-earnings call late last week (after beating top and bottom-line estimates for the first quarter), management referred to the chip shortage situation as “very severe.”
The problem could be so severe that Nio’s guidance of just 21,000 to 22,000 vehicles for the second quarter might fall short of Deutsche Bank analyst Edison Yu’s full-year target. Yu has forecasted 2020 deliveries for Nio to reach 95,000 units. Assuming Nio delivers 22,000 vehicles over each of the next three quarters, it falls short of Yu's estimate. Meeting the 95,000 unit mark for the full year might be difficult if supply constraints continue.
Yu currently rates Nio’s shares as a "buy" with a $60 price target. Yu also covers XPeng and Li Auto. He rates XPeng as a “buy” with a $48 price target, while he has a “hold” on Li Auto’s shares with a $35 target.
XPeng is set to post its first-quarter financials on May 13; XPeng has yet to announce the release date.