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A Nio eS8 car
Hector Retamal / AFP via Getty Images
Covid-19 and the shortage of semiconductors are once again running out of electric vehicle stocks as China’s August deliveries of electric vehicles fell short.
NIO
(ticker: NIO) shares fell about 5% in early operations. However, stocks have regained their way back and are up about 0.2% around 11:10 a.m. Eastern Time.
XPeng
(XPEV) have fallen by about 2.8%.
He
S&P 500
increases by about 0.2% and the
Dow Jones industrial average
has dropped 0.1%.
Tesla
Shares (TSLA) had little success in Chinese delivery results before recovering and recently rose 0.4%.
Read Auto
(LI) is the Chinese manufacturer of electric vehicles that contrasts the delivery trend. Its August deliveries seemed correct and shares rose 0.8%.
NIO delivered 5,880 vehicles in August, well below the monthly production capacity of about 8,000 vehicles and below the 7,931 vehicles delivered in July. In addition, the company cut the guidelines: third-quarter deliveries are now expected to reach about 23,000, below the 24,000 expected when the company reported its second-quarter profits in early August. If there’s one silver line for investors, it’s that the NIO guide involves about 9,000 vehicles delivered in September. That means he expects production and deliveries to recover.
Citigroup analyst Jeff Chung focused on the possible rebound in his Wednesday investigation report that reacted to the figures. Values Buy NIO shares and has a target price of $ 70 for the shares. It also values buying XPeng shares. Its target price for these shares is $ 53.40. He called XPeng’s numbers according to his expectations.
XPeng delivered 7,214 vehicles in August, better than the NIO number, but below the 8,040 delivered in July. XPeng did not update its guidelines, perhaps because it reported second-quarter numbers on August 26th. The company expects to deliver 22,000 vehicles in the third quarter. That involves about 7,000 deliveries in September.
The other positive data point that investors need to maintain is Li’s deliveries. He delivered 9,433 vehicles to it in August. This is a new monthly record and 8,589 delivered in July. But Li’s quarterly targeting involves about 7,000 units delivered in September, so deliveries are expected to drop next month.
Altogether, the three Chinese electric vehicle manufacturers listed in the U.S. delivered about 22,500 vehicles in August, up from 24,500 delivered in July.
The Chinese electric vehicle sector is still facing supply chain constraints, which has been a headache for investors year-round in generating weak returns and volatility. When it comes to trading on Wednesday, NIO and XPeng are down about 19% and 1%, respectively, while Li’s shares are up about 7%. The three shares are down about 40%, on average, from the 52-week highs set in late 2020 or early 2021.
Supply constraints should be evident when U.S. automakers report August sales. Data provider Ward’s predicts that the annualized annual sales rate – as reported by car sales in the US – will reach 14.5 million units. This has declined from the rate of about 16.8 million units in the first half of 2021. New vehicle inventories have been depleted by the shortage of chips, leaving dealers with few vehicles to spare. to sell.
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