Nio Stock, Li Auto, Xpeng Jump As EV Sales Vault In ‘White Hot’ China

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Nio (NIO), Xpeng Motors (XPEV) and Li Auto (LI) delivered robust December sales, along with Tesla (TSLA), in China’s white-hot market for electric vehicles. China EV stocks surged while Nio stock jumped near a buy point.

Nio more than doubled December sales to 7,007 EVs, the company said Sunday. Tesla’s China nemesis also more than doubled sales in the fourth quarter, to 17,353 units and, in all of 2020, to 43,728 units. Nio Chief Executive William Bin Li cited “the growing recognition of our premium brand” in a company news release. In addition, Nio says its new battery-as-a-service program is gaining greater acceptance.

Nio said it will unveil its first new electric sedan, a rival to Tesla’s Model 3 in China, at Nio Day on Jan. 9. It also will share progress on self-driving and other core technologies.

Meanwhile, Tesla saw global sales rise 36% in 2020, falling just short of a targeted 500,000 deliveries. The electric-car leader officially launched the new made-in-China Model Y on Jan. 1. With deliveries set to begin in late February, the Model Y will compete with electric crossovers sold by Nio and Xpeng Motors.

Among other Chinese EV startups vying to fend off Tesla on their home turf, Li Auto saw December sales of its Li One electric-sport utility vehicle vault 530% to 6,126 units. Its fourth-quarter deliveries surged 67% quarter over quarter to 14,464 units. Li began volume production of the One in November 2019.

Xpeng Motors reported December sales jumped 326% to 5,700 EVs. Sales increased 303% in the fourth quarter, to 12,964 units, and more than doubled in all of 2020, to 27,041 units. Xpeng sells the P7 sedan and G3 compact SUV.

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Nio Stock, Chinese EV Stocks Surge

Nio stock popped nearly 8% to 52.70 in Monday’s stock market, working on a 57.30 cup-shaped buy point. Among other Chinese EV stocks, Li Auto jumped 9% to 31.50 and Xpeng gained 7.3% to 45.96. XPEV stock provided a 43.91 entry off support at the 10-week line. Meanwhile, Tesla rose 4.7% near 739 and is far extended from a 466 buy point. Tesla stock, which is on the IBD Leaderboard, pegged an all-time high as sales boom and it ramps up in China.

In a “white hot” China EV market, domestic players such as Nio and Tesla all handily beat Wall Street’s expectations, Wedbush analyst Dan Ives wrote Monday. He reiterated a prior view that global EV demand is “seeing a major inflection” into 2021.

The weekend’s delivery numbers underscored his view that Tesla will “disproportionately benefit” from higher EV demand. Ives believes Tesla saw “pronounced strength” in China during the fourth quarter.

“China remains a greenfield EV market opportunity as we believe EV sales can potentially double in the region over the next few years,” he said.

Find Aparna Narayanan on Twitter at @IBD_Aparna.


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