Li Auto deliveries soar as Xpeng and Nio sales slide

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on Jun 1, 2023
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  • Li Auto has become a shining star in China’s EV industry.
  • The company’s monthly deliveries surged by 146% YoY.
  • Nio and Xpeng’s deliveries were weaker than expected.

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Li Auto (NYSE: LI), the giant Chinese electric vehicle company, is firing on all cylinders even as demand of its products jump. The company sold over 28,000 in May, a big increase than the 25k that it sold in the previous month. It was also 146% higher than what the company delivered in the same month in 2022.

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As a result, the company’s finances did significantly better than expected. Its gross sales rose to above RMB 10 billion for the first time on record. The company also boosted the number of retail outlets to 314 stores in 124 cities. The CEO said:

“The full-scale upgrade of our organizational processes has comprehensively strengthened our operating capabilities, advancing both our operating quality and efficiency in an upward spiral.”

This strong performance explains why the Li Auto stock price has diverged from other companies. Li Auto stock price has jumped by more than 131% from the lowest level in 2022.

Meanwhile, Nio, one of the best-known Chinese EV companies, said that its deliveries came in at 6,155 in March. These deliveries were about 8% below what the company delivered in the previous month. It was about 12% from what it sold in 2022, signaling that it is no longer a growth stock. As I wrote here, there is a likelihood that Nio stock could continue plunging.

Xpeng delivered 7,506 vehicles in May, a 6% increase from March. These deliveries were about 26% lower than those it sold in 2022. This slow growth explains why the XPEV stock price has plunged by over 66% in the past 12 months.

China Li Auto Nio Electric Vehicle (EV) Manufacturing Stock Market