Nio Falls Farther Behind in EV Deliveries, XPeng & Li Auto Push Forward

Despite new records, investors are cautious on Chinese EV stocks amid regulatory uncertainty, chip shortage.
Sep. 01, 2021 16:01
Nio Falls Farther Behind in EV Deliveries, XPeng & Li Auto Push Forward

In a traditional update on China's EV sector, here's the report on August deliveries by XPeng, Li Auto, and Nio. This time, record-breaking results and a lowered outlook left investors not-so-cheerful, as China's regulatory changes related to private data, as well as the chip shortage, raise concerns.

The stock in XPeng Inc. (Nasdaq: XPEV; HKEX: 9868) traded about 3% lower Wednesday morning, at $41.49 per share, despite another record-breaking month. The company sold 7,214 vehicles last month, a 172% increase year-over-year. Specifically, the sales of P7s have tripled from the same time last year.

So far, XPeng has delivered 45,992 total vehicles in 2021, a 334% increase from a year ago.

Li Auto Inc. (Nasdaq: LI; HKEX: 2015) also showed yet another record with 9,433 car deliveries in August – a 248% surge year-over-year. So far, Li has delivered 48,176 Li ONEs year-to-date. With just one model on the market, Li Auto continues to beat both XPeng and Nio in the numbers – and the shortage of semiconductors did not seem to impact its sales.

August was also a breakthrough month for Li Auto as it has completed its Hong Kong dual offering, raising $1.5 billion for shares priced at HK$118 each. The company had followed XPeng, which debuted on the Stock Exchange of Hong Kong in early July in a $1.8 billion deal. Both Li Auto and XPeng completed their New York IPOs about a year ago, with Li raising $1.1 billion and XPeng raising $1.5 billion.

Intraday Wednesday, Li's stock was 1% higher, at $31.21 per share. As Barron's noted, Li Auto is also the best-performing China EV stock this year, being now 4% down year-to-date. To compare, XPeng has lost 6% and Nio has lost nearly 27% of the market value since early January.

Lastly, Nio Inc. (NYSE: NIO) has recovered from early-day lows to 1% in the green before noon, trading at $39.69 per share. The company has indeed fallen behind the rival startups, with 5,880 car deliveries in August, up 48% from a year ago but at a decline from 7,931 units in July.

In its report today, Nio has adjusted its delivery outlook to between 22,500 and 23,500 vehicles for the third quarter "in light of the continued uncertainty and volatility of semiconductor supply." The company said that despite the increasing demand, production "was materially disrupted by supply chain constraints resulting from the COVID-19 pandemic in certain areas in China and Malaysia." 

Li Auto, Xpeng, XPEV, NIO, EVs, China