Chinese EV Delivery Numbers Surpass Expectations

Chinese electric-vehicle delivery numbers have been released for the month of August, and they have exceeded expectations. These figures are crucial for EV giants like Tesla and BYD, as well as for investors who want to gauge the level of demand in the market.

Record-Breaking Results from Li Auto, NIO, and XPeng

Leading the charge, Li Auto (LI), NIO (NIO), and XPeng (XPEV) have all reported their delivery figures, showcasing exceptional performance. Together, these companies achieved a new record for combined monthly deliveries. As a result, all three stocks experienced a boost in premarket trading.

• Li Auto delivered an impressive 34,914 cars in August, marking a new record for any given month. In July, the company had already set a record with 34,134 deliveries. It's worth noting that back in August 2022, during the height of Covid-19 lockdowns in China, Li Auto only managed to deliver 4,571 cars. However, in 2023 so far, Li Auto has surpassed expectations with over 208,000 vehicles delivered, representing a remarkable growth rate of approximately 175%.

• NIO delivered 19,329 cars in August, slightly lower than July's record-breaking figure of 20,462 deliveries. Nevertheless, this still represents significant growth compared to the same period last year when NIO only managed to deliver 10,677 vehicles. In total, NIO has successfully delivered around 94,000 cars in 2023 so far, reflecting an impressive year-over-year increase of approximately 32%.

• XPeng managed to deliver 13,690 cars in August, showing a positive upward trend from the 11,008 deliveries in July. However, it is important to note that XPeng's monthly record remains at 16,000 units, achieved back in December 2021. While the company has faced some challenges in scaling up production in recent months, it still managed to deliver a considerable volume of around 66,000 units in 2023, albeit with a 26% decline compared to the previous year.

Impact on Stock Performance

XPeng's struggles have taken a toll on its stock price over the past year. From trading at around $17 per share back in the same period last year, it has experienced a significant decline and is currently below $7 per share as of early 2023. However, with the uptick in deliveries and positive market response to the latest figures, it remains to be seen whether XPeng can regain its former strength.

In conclusion, Chinese EV delivery numbers have demonstrated remarkable growth and exceeded expectations for the month of August. With Li Auto, NIO, and XPeng setting new records, this indicates strong demand in the market. While challenges persist for some companies, the overall outlook for the Chinese EV sector continues to be promising.

Strong Performance for XPeng Shares

XPeng shares have displayed a significant improvement in recent times, thanks to a substantial $700 million investment from Volkswagen (VOW.Germany). This collaboration aims to develop two electric vehicles (EVs) exclusively for the Chinese market.

Impressive Growth

XPeng's stock has witnessed a 3% increase in the last 12 months, and it continued its positive trajectory by rising an additional 4.1% during premarket trading following the release of impressive delivery numbers. Furthermore, S&P 500 and Nasdaq Composite futures experienced a slight increase of 0.2% and 0.1% respectively.

In contrast, NIO's stock has endured a 45% decline over the same 12-month period due to higher interest rates and falling car prices, which have negatively affected investor sentiment. However, NIO's stock showed signs of recovery by rising 1.3% during premarket trading.

On the other hand, Li's consistent and successful deliveries have resulted in a remarkable 49% increase in its stock value over the past year. This positive trend continued as Li's shares soared by an additional 2.9% during premarket trading.

Record Deliveries

The combined efforts of these three EV manufacturers have resulted in an exceptional delivery number of over 68,000 units, marking a significant increase from the approximately 25,000 units delivered a year ago. This achievement represents the highest combined total ever recorded by these companies. Impressively, the cumulative deliveries for this year have reached around 360,000 units, showcasing a notable year-over-year growth rate of approximately 50%.

Positive Implications for the Chinese EV Industry

The consistent growth in deliveries not only benefits Li, NIO, and XPeng individually but also indicates a healthy demand for EVs in China, which is currently the largest market for new vehicles.