NIO & XPeng Deliveries Surge in Q3, as Tesla Disappoints

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  • XPEV.us
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Nio, Xpeng & Tesla Deliveries Update

NIO Inc posted record deliveries of 55,432 vehicles in the third quarter, nearly doubling from Q2 and surging around 75% from a year ago. It started deliveries of its newest vehicle in September, the EC6 coupe SUV, but did not disclose how many units it has sold. [1]

Rival XPENG also impressed, as it handed over 40,008 vehicles, which marked the highest level since Q4 2021 record and a more than 70% y/y increase. Deliveries of its G6 Coupe SUV started in Q3 and exceeded 19,000 units. [2]

The figures from the two Chinese EV startups were definitely impressive and highlight their efforts to leave the 2022 hardships behind them. They benefited from Beijing's shift away from the strict zero-Covid policy, but the country's recovery is failing, creating fresh challenges.

Both companies are looking outside of China and have a strong presence in Europe - the world's second largest EV market. Xpeng, which is one of my Top 10 stocks to watch in this quarter, is preparing to follow Nio into the important German market. However, the recent clash between the European Union and China, could make it harder for them to gain the trust of European consumers. The EU Commission recently launched an anti-subsidy probe into electric vehicles coming from China.

Despite the surge in deliveries, NIO.us and XPEV.us are losing ground this week, which is indicative of the challenging environment.

The king of the electric vehicles market on the other hand, disappointed with its Q3 report. Tesla Motors delivered 435,059 vehicles, which marked year-over-year growth, but constituted a more than 6.5% decline from the second quarter all-time highs. However, the production/delivery gap inverted, as Tesla's stream of price cuts over the past several months is working and output was affected by planned shutdowns. [3].

The results were definitely underwhelming, but Telsa still stayed ahead than BYD (BYDC.hk), in terms of pure EV sales. The Chinese auto giant sold 431,603 battery electric vehicles (BEVs), up almost 22% q/q [4]. Tesla has an aging fleet, but hopes to capture more market share in China with its refreshed Model 3.

Despite various challenges and reasons for concern, Tesla Motors remains ahead of its competitors and continues to push on multiple fronts. From lithium refining, to revolutionary manufacturing procedures, it is also on my radar for its Artificial Intelligence capabilities

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 03 Oct 2023 https://ir.nio.com/news-events/news-releases/news-release-details/nio-inc-provides-september-and-third-quarter-2023

2

Retrieved 03 Oct 2023 https://ir.xiaopeng.com/news-releases/news-release-details/xpeng-announces-vehicle-delivery-results-september-and-third-2

3

Retrieved 03 Oct 2023 https://ir.tesla.com/press-release/tesla-vehicle-production-deliveries-and-date-financial-results-webcast-third-quarter-2023

4

Retrieved 15 Jul 2024 https://www1.hkexnews.hk/listedco/listconews/sehk/2023/1002/2023100200015.pdf

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