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What This Analyst Likes About Q3 Deliveries Updates From XPeng and Nio – NIO (NIO)



U.S.-listed Chinese language EV makers XPeng Inc – ADR (NYSE:XPEV) and Nio Inc – ADR (NYSE:NIO) reported robust September deliveries.

The Nio, XPeng Analyst: BofA Securities analyst Ming Hsun Lee reiterated a Purchase on XPeng shares and raised the value goal from $61 to $63.

The analyst additionally reiterated a Purchase ranking and $62 value goal on Nio shares.

The Nio, XPeng Theses:

XPeng Impresses With Sturdy Deliveries Momentum, Superior Execution: XPeng’s September deliveries of 10,400 models represented 199% year-over-year and 44% month-over-month, Hsun Lee famous. The quarterly variety of 25,666 models, the analyst stated, was additionally 199% increased than a yr in the past.

Citing the robust third-quarter supply quantity, XPeng’s superior execution even amid chips scarcity and energy rationing, and sturdy demand for P7 and the P5, the analyst raised his quantity gross sales estimates for 2021, 2022 and 2023 by 6%, 9% and 10%, respectively, to 92,400, 156,000 and 217,000.

XPeng’s just lately launched P5 sedan supply is more likely to be the following catalyst to spice up month-to-month gross sales, the analyst stated. The retail value of the corporate’s third mannequin is 158,000 yuan to 224,000 yuan ($24,500-$34,750), he famous.

XPeng is more likely to aggressively develop its level of gross sales and charging infrastructure and provoke extra advertising campaigns to strengthen model fairness, BofA stated.

Associated Hyperlink: XPeng Launches P5 EV Sedan With Superior Good Capabilities, Sub-$25,000 Beginning Worth

Nio Prevails Regardless of Pushbacks: Nio’s September deliveries had been up 126% year-over-year and 81% month-over-month to 10,600 models, Hsun Lee stated. Quarterly deliveries climbed 100% year-over-year and 12% quarter-over-quarter to 24,400 models, he added.

The corporate’s August efficiency, the analyst stated, was marred by provide chain constraints akin to chip scarcity and the resurgence of the pandemic in sure areas in China.

However the hiccups, Nio managed to report document numbers for September and the quarter, he added.

On Nio’s Norwegian growth, the analyst famous that the corporate has opened its first Nio Home in Norway and accomplished the primary batch of car deliveries within the nation.

Nio plans to construct 20 Energy Swap stations in Norway by the tip of 2022, the analyst added.

The adoption of a hybrid battery pack will assist Nio cut back price per automotive by round 2%-3%, which ought to enhance its gross revenue margin or allow it to make use of extra higher-end parts to reinforce efficiency, BofA stated.

The agency attributed its bullish bias to strong quantity gross sales/mannequin pipeline, and the corporate’s concentrate on autonomous driving, powertrain, and charging options to reinforce consumer expertise.

XPeng, Nio Worth Motion: XPeng shares had been down 0.20% to $35.46 and Nio shares had been slipping 0.73% to $35.38 at market shut Friday.

Associated Hyperlink: As Nio Takes First Steps Into Norway, The Chinese language EV Startup Will Be Up In opposition to These Formidable Rivals

Photograph: Courtesy Nio/ Courtesy Xpeng

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