CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

XPeng, NIO and Li Auto elevated by strong EV delivery numbers

By Andrew Knoll

23:28, 1 December 2021

An EV driver plugs in
The Chinese EV market has rebounded with strong delivery numbers - Photo: Unsplash

For three US-listed Chinese electric vehicle manufacturers, delivery numbers bolstered share prices relative to a sagging sector and overall market on Wednesday.

XPeng, NIO and Li Auto all ascended in early trading and closed the day down slightly after strong delivery numbers bolstered all three Chinese automakers.

XPeng delivered 15,613 vehicles, a company record that represented a 270% leap year over year, with designs on European expansion in 2022. That performance put them ahead of their projections for Q4 and led to a premarket bump of almost 4.5%. Li Auto’s 13,485 deliveries also shattered its prior one-month high and placed it ahead of pace for its Q4 estimate, engendering a nearly 6% pre-market boost. NIO delivered 10,878 vehicles, salvaging its potential to meet anticipated Q4 figures after a tepid October that saw fewer than 3700 deliveries and creating a premarket step up of nearly 4%.

Though Tesla did not publish its figures, the China Passenger Car Association indicated that the company sold more than 110,000 China-made vehicles in September and October, with less than half of those designated for export.

Healthy demand

Deliveries are a strong indicator of demand in any era. But amid a barely-mitigated crisis for the auto industry, they are also an indicator that the dearth of semiconductor chips has not impacted supply capabilities of these three manufacturers as much as it has some other automakers.

China is the world’s largest EV/NEV market, with NEVs making up 6% of auto sales in China last year and 14.4% thus far in 2021. The Chinese government has pledged to become a net-neutral carbon emissions nation by 2060.

XPeng and Li stock has gained 9% and 12.5%, respectively, over the past month, even as major markets have dipped and Tesla has fallen about 6.5%. 

What is your sentiment on LIus?

36.97
Bullish
or
Bearish
Vote to see Traders sentiment!

BTC/USD

37,805.25 Price
+0.040% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Gold

2,036.34 Price
-0.400% 1D Chg, %
Long position overnight fee -0.0196%
Short position overnight fee 0.0114%
Overnight fee time 22:00 (UTC)
Spread 0.30

XRP/USD

0.61 Price
-0.110% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

Oil - Crude

75.68 Price
-2.630% 1D Chg, %
Long position overnight fee -0.0165%
Short position overnight fee -0.0054%
Overnight fee time 22:00 (UTC)
Spread 0.030

Abrupt turnaround

NIO in particular saw underperformance in Q2 and into Q3, but all of China’s “Big Three” EV makers were fettered to some degree by talk of an overcrowded market with hundreds of NEV makers sprouting up in China.

In September, the Chinese government began addressing the concerns regarding market fragmentation and made overtures toward consolidation of the sector.

That is likely to strengthen the position of early entrants and well-established manufacturers like XPeng, Li and NIO. Already more bankable in the short run - some of the NEV companies have yet to manufacture a product, let alone turn a profit – the hand of China’s central government could help mold the market in a way that further reinforces their competitiveness and viability.

 

Markets in this article

LIus
Li Auto Inc (Extended Hours)
36.97 USD
-1.36 -3.560%
LIus
Li Auto Inc (Extended Hours)
36.97 USD
-1.36 -3.560%
NIO
NIO Inc - ADR (Extended Hours)
7.30 USD
0.07 +0.980%
NIO
NIO Inc - ADR (Extended Hours)
7.30 USD
0.07 +0.980%
XPEV
XPeng Inc - ADR (Extended Hours)
16.66 USD
-0.63 -3.670%

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading