Chinese Electric Vehicle Manufacturers
Reported April delivery on Sunday morning. The numbers are not very good. that gives
Something else for investors to worry about.
NIO (ticker: NIO) delivered 5,074 vehicles in April, down from about 10,000 in March and down from about 7,100 in April of 2021.
Covid seems to be the cause. “In late March and April 2022, the company’s vehicle production and distribution has been affected by supply chain instability and other disruptions caused by a new wave of the COVID-19 outbreak in some regions in China,” NIO wrote in a news release. Is.
This is no surprise. Investors have known for weeks about production problems related to Covid in China. The COVID lockdown in Shanghai, for example, caused Tesla’s plant to close for weeks, costing Tesla (TSLA) perhaps 15,000 vehicle deliveries in the first quarter of 2022. Tesla delivered about 310,000 vehicles, up just above the 309,000 vehicles delivered in fourth. quarter of 2021.
Li Auto (LI) delivered 4,167 vehicles in April, down from about 11,000 in March and about 5,500 in April 2021.
Looking ahead, Wall Street expects Lee’s sales to increase to about $1.9 billion in the second quarter, up from the first quarter’s estimated $1.5 billion. Lee delivered about 32,000 vehicles in the first quarter of 2022.
Li also spoke about COVID in his news release: “The COVID-19 resurgence in the Yangtze Delta region has caused severe industry-wide disruptions in supply chain, logistics and production since late March.” Li manufactures cars in Changzhou, the center of the region, and gets the majority of his cars locally.
The XPeng (XPEV) results look slightly better than the Li or NIO numbers. XPeng delivered 9,002 vehicles in April, up from about 15,000 vehicles delivered in March, but about 5,000 in April 2021.
Looking ahead, Wall Street expects XPeng sales to grow to approximately $1.3 billion in the second quarter, up from the $1.1 billion projected for the first quarter of 2022. XPeng delivered approximately 35,000 vehicles in the first quarter of 2021.
XPeng also mentioned covid in its news release.
Combined, the three delivered around 18,000 vehicles in April. This is the worst monthly result since May 2021 and is lower than the roughly 21,000 combined vehicles delivered in February 2022 – when the Chinese Lunar New Year holiday affected the results. But the silver lining is year-over-year, with deliveries up 73% year over year, driven by Li and Xping’s gains.
On Monday, all three stocks opened at lower levels, then turned positive. Lee’s shares were up 2.9%. Shares of NIO rose 1.7% and shares of XPeng gained 1.3%.
The shares of all three companies have already taken a beating. Coming into trading Monday, shares of NIO, XPeng and Li were down more than 40% year on average, far worse than their respective declines of 13% and 21%.
Nasdaq Composite Index.
Delivery results can also be spread in Tesla trading. Tesla’s Shanghai plant is its largest producer. Wall Street’s second-quarter delivery expectations for Tesla, however, don’t look as aggressive as the other three. Analysts project Tesla will deliver about 305,000 vehicles in the second quarter, down from the first quarter’s figure of 310,000.
Tesla stock has also been beaten, falling 19% in April, partly because of the market — the Nasdaq was off 13% — and partly because investors weighed in on the impact of CEO Elon Musk’s surprise buying plan.
(TWTR) at your car company. Perhaps, that explains why Tesla stock was up 0.4% on Monday.
There’s already a lot of bad news in the stock.
Write to Al Root at [email protected]