EV Makers NIO & XPeng Report Solid Q2 Deliveries

  • NIO.us
    (${instrument.percentChange}%)
  • TSLA.us
    (${instrument.percentChange}%)
  • XPEV.us
    (${instrument.percentChange}%)

NIO Inc

NIO handed over 25,059 vehicles during the second quarter, constituting a 14.4% year-over year rise, but the figure was lower than the one in the first quarter. [1]

Last month, the Chinese EV startup had unveiled its latest model, the ES7 mid-large SUV, with deliveries expected to begin in August. The ES7 will be the firm's fastest SUV to date, with 0-100 Km/h achieve in 3.9 seconds. [2]

Earlier this week, Grizzly Research had accused NIO of exaggerating revenue and profitability figures [3], with the EV maker responding that the report of the "short seller" has no merit and includes "numerous errors, unsupported speculations and misleading conclusions and interpretations". [4]

NIO.us rose by around 25% last month but had a mixed second quarter, in an overall bad year-to-date performance.

XPeng

Rival XPeng, reported higher figures, since it delivered 34,422 cars in Q2, almost doubling compared to the same period last. However, the firm had handed over a marginally higher number of vehicles during the first quarter (34,561). [5]

The firm said that pre-orders for its new G9 flagship SUV will start next month. The new model was unveiled late last year and will be the first to get the XPILOT 4.0 in-house proprietary advanced driver assistance system (ADAS). [6]

XPEV.us registered a very poor first-half of the year, but the third quarter as profitable thanks to June's roughly 35% rally.

China's EV Importance

The electric vehicle market is very dynamic with start-ups constantly popping-up and legacy automakers pushing on electrification, while Tesla (TSLA) is the undisputed king of the market, having delivered more than 900,000 cars worldwide last year. [7]

The Chinese market is very important for the industry, since it accounted for more than half of the global sales in 2021. In a report published yesterday, the International Energy Agency (IEA) found that electric vehicle sales doubled to 6.6 million last year, representing close to 9% of the overall car market, while 3.4 million of them were sold in China. [8]

During a recent Bloomberg interview in the Qatar Economic Forum, Tesla's CEO Elon Musk, said that he is "very impressed" with Chinese car companies (and in Chinese firms in general), which are "extremely competitive". [9]

Nikos Tzabouras

Senior Market Specialist

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 01 Jul 2022 https://ir.nio.com/news-events/news-releases/news-release-details/nio-inc-provides-june-and-second-quarter-2022

2

Retrieved 01 Jul 2022 https://www.nio.com/news/nio-launched-smart-electric-mid-large-suv-es7

3

Retrieved 01 Jul 2022 https://grizzlyreports.com/we-believe-nio-plays-valeant-esque-accounting-games-to-inflate-revenue-and-boost-net-income-margins-to-meet-targets/

4

Retrieved 01 Jul 2022 https://ir.nio.com/news-events/news-releases/news-release-details/nio-inc-responds-short-seller-report

5

Retrieved 01 Jul 2022 https://ir.xiaopeng.com/news-releases/news-release-details/xpeng-announces-vehicle-delivery-results-june-and-second-0

6

Retrieved 01 Jul 2022 https://heyxpeng.com/news/017f633f682a7f4f58e62c9e206e0151

7

Retrieved 01 Jul 2022 https://ir.tesla.com/press-release/tesla-q4-2021-vehicle-production-deliveries

8

Retrieved 01 Jul 2022 https://www.iea.org/commentaries/electric-cars-fend-off-supply-challenges-to-more-than-double-global-sales

9

Retrieved 09 Dec 2022 https://www.youtube.com/watch

Disclosure
*

When executing customers' trades, FXCM can be compensated in several ways, which include, but are not limited to: spreads, charging commissions at the open and close of a trade, and adding a mark-up to rollover, etc. Commission-based pricing is applicable to Active Trader account types.

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}