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NIO, XPE, and LI reported lower vehicle sales compared to March
Shares of Chinese electric vehicle (EV) stocks like Nio (NYSE:NIO), XPeng (NYSE:XPEV) and Li Auto (NASDAQ:LI) were all trading lower premarket after reporting April deliveries. Nio reported delivering 5,074 vehicles, which was down about 50% month-over-month (MOM). In March, the company delivered 9,985 vehicles. Meanwhile, XPeng delivered 9,002 vehicles during the month, up 75% year-over-year. However, deliveries for XPeng fell about 42% MOM, compared to 15,414 vehicles delivered in March. Finally, Li Auto delivered 4,167 vehicles, down from 11,034 in March. So, why were Chinese EV deliveries down so much from March?
All three companies were affected by the ongoing lockdowns in China. XPeng stated that the lockdowns affected “the overall supply chain, manufacturing and transportation of automobiles in China.” As of April 30, the company had delivered a total of 43,563 EVs since the beginning of the year.
Nio’s operations were affected by the lockdowns as well, although the company stated that its vehicle production efforts have been gradually recovering. As of April 30, the company had delivered 30,842 EVs year-to-date (YTD). On top of that, Li Auto explained that:
“Our Changzhou manufacturing base is located in the center of the Yangtze Delta region, which is home to over 80% of our parts suppliers, especially in Shanghai and Kunshan. The COVID-19 resurgence in this area has incapacitated some suppliers in Shanghai and Kunshan. Some of them completely shut down production or delivery of their products, making it impossible for us to maintain production after exhausting our parts inventory.”
As a result of the coronavirus lockdowns, Li Auto’s April production capabilities were reduced and the company also had to delay in delivering some EVs to customers. Li Auto is currently working with its supply chain partners to resume normal production. As of April 3o, the company operated 225 retail stores and 292 service centers.
In late May, Nio plans on unveiling its 2022 NIO ES8, ES6 and EC6 models. The company also plans on launching its digital cockpit upgrade plan for its existing customers.
Furthermore, XPeng is working on its fifth-generation flying car, the XPENG X2. The X2 was recently on display at the eCar Expo event in Stockholm, Sweden.
Finally, Li Auto announced last month that it would be delaying the release of its L9 model SUV. The release was originally scheduled for April 16 and was delayed due to the rising coronavirus cases in China.
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.
Article printed from InvestorPlace Media, https://investorplace.com/2022/05/chinese-ev-stocks-news-why-are-nio-xpev-li-stocks-in-the-spotlight-today/.
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