A new month means new delivery numbers for Chinese electric-vehicle makers. It is an opportunity for investors to examine the health of the companies and the overall demand for EVs in China, the world’s market for new cars and EVs.
Three US-listed Chinese EV makers recently reported earnings that included fourth-quarter guidance for vehicle delivery. Investors knew what to expect. The results on Wednesday did not disappoint.
NIO (ticker: NIO) reported deliveries of 10,878 vehicles in November.
In its third-quarter earnings release last month, NIO management said it expects the company to deliver about 24,500 vehicles in the fourth quarter. NIO delivered 3,667 vehicles in October, i.e. around 20,800 vehicles in November and December, which is around 10,400 every month.
NIO delivered 10,628 vehicles in September, which was a monthly record for the company. October deliveries declined dramatically as the company took plant downtime to restart its operations.
US-listed shares of NIO rose 3.9% in premarket trading.
XPeng (XPEV) reported deliveries of 15,613 vehicles in November, up 270% from a year ago.
In its third-quarter earnings release, XPeng management said it expected to deliver approximately 35,500 vehicles in the fourth quarter. XPeng delivered 10,138 vehicles in October, i.e. about 25,400 vehicles in November and December, which is about 12,700 every month.
XPeng delivered 10,412 vehicles in September, a monthly record at the time.
US-listed shares of XPeng were up 4.4% in premarket trading on Wednesday.
Lee Auto (LI) reported deliveries of 13,485 vehicles in November.
In its third-quarter earnings release, Lee Auto forecast approximately 31,000 vehicle deliveries for the fourth quarter. The company delivered 7,649 vehicles in October, i.e. around 23,400 in November and December, which translates to around 11,700 deliveries in a month.
Lee delivered around 9,400 vehicles in August. That was a monthly record. The stock gained 5.9% in US premarket trading.
Solid distribution figures demonstrate strong demand for electric vehicles in China. This is positive for Lee and its peers including Tesla (TSLA).
The figures also demonstrate that Chinese EV makers are getting the semiconductors they need to make cars. A global semiconductor shortage has disrupted global car production throughout the year. For example, Lee said it has an assembly capacity of about 14,000 units per month. It has not been a hit due to lack of chips. A resolution of the semiconductor supply squeeze in 2022 should be another positive for the automotive industry as a whole.
In Wednesday’s trading, US-listed shares of XPeng are up more than 17% over the past month.
The S&P 500 and Dow Jones Industrial Average are down 1% and 4%, respectively, over the same period.
NIO’s stock has declined over 5% in the past one month while Li’s shares have gained over 14%. The stock sale of NIO, which was completed in November, hurt NIO’s stock. The company raised about $2 billion.
Write to Al Root at [email protected]