Chinese EV (electric vehicle) companies including NIO, Li Auto, and Xpeng Motors have released their April delivery reports. Here are the key takeaways from the release.
Li Auto delivered 25,681 cars in April – a YoY rise of over 500% and the second consecutive month when its monthly deliveries surpassed 20,000.
The company’s cumulative deliveries reached 335,599 at the end of April which took it ahead of NIO. Its cumulative deliveries surpassed that of Xpeng Motors last year only.
Commenting on the delivery report, Xiang Li, Li Motors’ CEO said, “We are pleased to have delivered over 10,000 Li L7s in its first full month of deliveries, establishing the vehicle as a preferred choice among five-seat premium SUVs for Chinese families while marking the first time a Chinese branded five-seat SUV priced above RMB300,000 has achieved this monthly delivery milestone.”
In the first quarter, Li Auto delivered 52,584 cars – a YoY rise of 65.8% – and way ahead of what NIO and Xpeng Motors delivered in the quarter.
Li Auto’s deliveries have mostly impressed markets over the last few months even as NIO and Xpeng Motors have disappointed.
Xpeng Motors’ Deliveries Disappoint Yet Again
Xpeng Motors delivered 7,079 vehicles in April which was 27% lower than the corresponding month last year. Its cumulative deliveries reached 276,387 at the end of April.
Last month, the company unveiled its new production platform called SEPA2.0 (Smart Electric Platform Architecture) -which it said would “shorten future models’ R&D cycle by 20%, significantly optimizing R&D efficiency.”
It added that 80% of architectural components under the new platform would be compatible with new models which would help it lower vehicle costs.
Notably, given the competition in the EV industry – which is reflected in the price war – it is becoming imperative for companies to lower their costs.
Xpeng Motors stock underperformed NIO and Li Auto last year as it disappointed markets with its earnings and financial performance.
One bright spot for Xpeng has been its NGP or Navigation Guided Pilot-which is the company’s Advanced Driver Assistance System (ADAS) similar to Tesla’s FSD (full-self driving).
Xpeng Motors stock underperformed NIO and Li Auto last year as it disappointed markets with its earnings and financial performance.
One bright spot for Xpeng has been its NGP or Navigation Guided Pilot which is the company’s Advanced Driver Assistance System (ADAS) similar to Tesla’s FSD (full-self driving).
Multiple EV companies went public over the last three years. However, Xpeng Motors believes that by the end of this decade, only 10 players would remain in the market and these would have annual volumes in excess of 3 million.
The company’s CEO He Xiaopeng said, “To be in that ‘3mn club’ you cannot be a China-only player, you have to be a global player. We think in that scenario, maybe close to half your volume is coming from outside of China.”
NIO Disappointed Markets with Its Q1 Deliveries
NIO delivered 6,658 vehicles in April which was 31.2% higher than in April 2022. The company’s cumulative deliveries reached 327,255 at the end of April.
The company’s delivery report disappointed markets and the stock is lower in US price action today – so is Xpeng Motors which has now disappointed for the last many months.
NIO is set to release its Q1 2023 earnings later this month where the company might provide the guidance for its second quarter deliveries.
The company delivered 31,401 cars in the first quarter which was within its guidance of 31,000-33,000.
NIO has started delivering cars in Europe and has said that it would eventually enter the US market.
That said, its cars would not get the $7,500 EV tax credit unless it localizes vehicle assembly and battery manufacturing in North America.
Foreign automakers are scrambling to source battery components according to the directions set by the Inflation Reduction Act to make their models eligible for the EV tax credit.
The updated list of eligible vehicles shows that only Volkswagen ID.4 is eligible for the full $3,750 EV tax credit in the US while all other models are from US companies.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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