Nio, Li Auto, XPeng Stocks in Green as Deliveries Rise in May

All three Chinese EV makers reported year-over-year growth in May, with Li Auto and Xpeng surging.
Jun. 01, 2022 19:31
Nio, Li Auto, XPeng Stocks in Green as Deliveries Rise in May

(CapitalWatch, June 1, New York) Chinese electric vehicle makers Nio, Li Auto, and XPeng saw significant growth in deliveries year-over-year for May.

The companies saw delivery growth despite a fraught environment for the EV firms in China. Risks of delisting in New York, supply chain disruptions, and material shortages have been weighing on the companies' stock performance. Although markets are still being pummeled, EV makers in China seem to be making a rebound.

Li Auto Inc. (Nasdaq: LI; HKEX: 2015) said it delivered 11,496 Li ONEs in May, a 166% jump year over year. 

Company co-founder Yanan Shen said in a statement that Li Auto is actively collaborating with its supply chain partners to recover production capacity, which was heavily disrupted by pandemic-related lockdowns in China.

In addition to its logistical woes, Li Auto was identified by the U.S. Securities and Exchange Commission among many other Chinese firms for failure to meet new audit requirements in April. Since the company can't easily comply as the two countries work out a compromise for the requirements, its position on the Nasdaq remains tenuous. 

Li Auto's stock was up 2% intraday Wednesday, at $25.64 per share.

Nio (NYSE: NIO; HKEX: 9866; SGX: NIO) reported 7,024 vehicle deliveries in May and a 12% year-over-year increase in deliveries year-to-date in 2022.

The company said that its production has been gradually recovering from the recent pandemic impacts, but its deliveries are still somewhat constrained. According to the company, Nio plans to ramp up its capacity and accelerate delivery recovery starting this month as restrictions begin to ease.

Nio shares have been on a winning streak over the past week. Wednesday afternoon, company shares were up nearly 3%, at $17.84 per share, and it's soared over 20% in the past five days.

Last week, a Bank of America (NYSE: BAC) analyst upgraded Nio from "neutral" to "buy" because of its improving sales, attractive valuations, and expectation-beating margins in the second half of 2021. Nio added 14% to its share price after the upgrade and has been on an upward trend since.

The company also became publicly listed on the Singapore Exchange this month, and shares surged as much as 22% on its debut.

Nio was also named by the U.S. Securities and Exchange Commission for non-compliance with audit requirements shortly after Li Auto. Analysts worried about Nio crashing if it joined Li Auto on the list of companies named for noncompliance, but its recent performance goes against their concerns. 

XPeng Inc. (Nasdaq: XPEV; HKEX: 9868) delivered 10,125 vehicles in May 2022, a 78% increase year-over-year. As of May 31, the company said, year-to-date deliveries have increased 122% year-over-year.

The company said it has resumed double-shift production at its Zhaoqing plant beginning in mid-May. As the market starts to recover, XPeng said it's working to accelerate the delivery of its hefty order backlog.

Recently, XPeng released its first-quarter earnings report for 2022 in May, giving disappointing guidance despite better-than-expected results.

The company reported $1.2 billion in sales on a loss of $268.3 million, or 32 cents per share. Revenue improved 153% year-over-year, while deliveries in the first quarter rose 159% compared to the same period a year ago.

In the second quarter, XPeng's anticipated revenue range of $1.02 billion to $1.13 billion was below analysts' predictions of $1.2 billion.