Chinese electric vehicle startups Nio Inc. (NYSE:NIO), XPeng Inc. (NYSE:XPEV) and Li Auto Inc. (NASDAQ:LI) reported on Tuesday mixed deliveries for October. Nio specifically flagged production and supply chain challenges amid renewed COVID-19 outbreak.
What Happened: Nio’s October sales came in at 10,059 units. This marked a 174.3% year-over-year jump but a 7.53% month-over-month drop. Li Auto said it sold 10,052 vehicles in October, up 31.4% year-over-year but down about 12.83% from the 11,531 vehicles delivered in September.
XPeng recorded deliveries of 5,101 units for the month. This marked a 49.68% year-over-year plunge and a 39.76% month-over-month decline.
By vehicle models, Nio sold 5,979 SUVs, including 2,814 ES7s. EV sedan sales numbered 4,080, comprising 3,050 ET7s and 1,030 ET5s. The company clarified that deliveries included direct sales to users as well as leasing partners in Europe, in accordance with its revenue recognition policy.
“The vehicles under NIO Subscription in Europe are recognized as assets on the company’s balance sheet but not counted towards the announced delivery volume,” it added.
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Nio said vehicle production and deliveries were constrained by operational challenges in its plants as well as supply chain volatilities amid the COVID-19 resurgence in certain regions of China.
Guangzhou-based XPeng’s October deliveries consisted of 2,104 P7s, 1,665 P5 sedans, 709 G3i SUVs and 623 G9 SUVs, which began deliveries on Oct. 27.
What’s Next? Li Auto said orders for Li L9 remained robust, solidifying its presence in the market for premium EVs valued at over 400,000 yuan ($54,954). The company also said its Li L8 to be launched this month has been received well and has seen increased order flow.
XPeng, meanwhile, said it is accelerating deliveries of its newest vehicle, the G9 SUV. It sees a steady production ramp-up, beginning in November.
"We expect that P7 and G9, both built on the Edward platform, will comprise a larger proportion of total deliveries in the coming months,” said He Xiaopeng, chairman and CEO of XPeng.
Incidentally, Tesla Inc. (NASDAQ:TSLA) reported record deliveries in China in September but has since lowered vehicle prices. This has stirred anxiety concerning a slowdown in demand amid trying economic conditions.
Price Action: Chinese EV makers have come under intense selling pressure recently following President Xi Jinping securing a third term.
Reacting to the October deliveries:
- Nio shares skyrocketed 8.58% to $10.50 in premarket trading on Tuesday, according to Benzinga Pro data.
- XPeng added 3.02% to $6.32.
- Li Auto advanced 8.81% to $14.82.
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