Chinese EV stocks fall after Li Auto reports delivery declines
Chinese EV stocks fall after Li Auto reports delivery declines

Chinese EV stocks fall after Li Auto reports delivery declines

Chinese EV stocks tank following Li Auto and Xpeng report drop in August deliveries; Nio ekes outgrowth.

Chinese EV stocks fall after Li Auto reports delivery declines

September 5, 2022: -On Thursday, the Stocks of Chinese electric vehicle makers Nio, Li Auto, and Xpeng tanked after the latter two start-ups reported a sharp decrease in August car deliveries.

Nio was the greatest business to extend every month in August, but U.S.-listed shares of the EV start-up closed more than 5% lower. Li Auto shares decreased by 3%, while Xpeng slumped more than 6%.

In Friday trade, Hong Kong-listed shares of Nio and Li Auto slipped 0.6% and 0.3%, respectively. Xpeng shares in the city fell 2%.

The Chinese economy is facing several challenges, including a resurgence of Covid-19 that contains seeing important cities like Shanghai locked down. In the previous few days, Shenzhen, China’s tech hub, has enacted Covid restrictions, and on Thursday, the mega city of Chengdu began lockdown.

While a few cities may have opened up again, consumer sentiment remains fragile, and uncertainty prevails due to China’s “zero-Covid” policy.

The economy is facing a power crunch impacting electric vehicle charging stations. The previous month, Tesla and Nio suspended some of their charging services.

Bill Russo, CEO at Shanghai-based Automobility, told CNBC that the numbers are “reflective of lingering supply chain issues and the fact that they’re on the premium end of the price range and with the weakening economy, people are looking toward affordability, and that’s squeezing some of the higher priced models.”

Last month, Xpeng said it anticipates delivering between 29,000 and 31,000 electric vehicles in the third quarter. This guidance disappointed investors.

Xpeng President Brian Gu said the guidance reflects that the industry is entering a “relatively slow season” and that traffic in stores is less because of the Covid situation.

Yanan Shen, president of Li Auto, said in an earnings call last month that the Covid outbreak “severely affected” the company’s supply chains and that there are remaining “disruptions and difficulties.”

Shen said there had been a slowdown in order intake for its flagship Li-One sports utility vehicle.

Li Auto began to deliver its recent L9 car to customers at the end of August. And the company added that it is planning to launch and have a large SUV called the Li L8 in early November. That could be affecting sales of its Li-One, according to Russo.

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Chinese EV stocks fall after Li Auto reports delivery declines
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Chinese EV stocks fall after Li Auto reports delivery declines
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Stocks of Chinese electric vehicle makers Nio, Li Auto, and Xpeng tanked after the latter two start-ups reported a sharp decrease in....
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The Women Leaders
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