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An Xpeng P7 car will be on display at the Beijing Motor Show on September 27, 2020.
WANG ZHAO / AFP via Getty Images
Start-up of Chinese electric vehicles
XPeng
reported strong fourth-quarter deliveries on Sunday evening.
The company delivered 5,700 vehicles in December 2020, up from 4,224 in November and 326% compared to December 2019. Throughout the fourth quarter, XPeng (ticker: XPEV) delivered 12,964 vehicles.
Deliveries exceed initial XPeng projections. XPeng management said in its third-quarter earnings conference that it expected to deliver about 10,000 vehicles in the fourth quarter.
The three Chinese EV shares listed in the U.S. had a very busy weekend, and each reported delivery numbers. The theme was the same for everyone: XPeng, along with
NIO
(NIO) i
Read Auto
(Li) surpassed internal projections. NIO delivered more than 17,000 vehicles, about 1,000 more than planned by management. He delivered more than 14,000 vehicles, about 3,000 more than planned by management.
Leader EV
Tesla
(TSLA) also reported fourth-quarter deliveries over the weekend. Elon Musk’s company delivered more than 180,000 vehicles in the fourth quarter, which was better than the approximately 176,000 vehicles forecast by analysts.
It is not easy to predict the reaction of investors to the ads of Chinese electric vehicles. All three stocks fell after reporting strong November deliveries. Although Li had sold more shares to raise cash during the period when three delivery figures were released in November.
However, falling into good news is a common bullish market action, and electric vehicle stocks are definitely in a bullish market. Tesla grew by around 740% in 2020 and is now the most valuable car company in the world by a wide margin. XPeng shares closed at $ 42.83 in 2020, a substantial increase from its $ 15-per-share OP price.
The gains make XPeng and the Chinese electric vehicle sector in general expensive. XPeng, for example, is trading at sales of approximately 1521 to approximately 2021. De Barron recently wrote that shares of Chinese electric vehicles seem too expensive. This article appeared in mid-December, and shares of Chinese electric vehicles, on average, trade with their site.
Wall Street, for the most part, disagrees De Barron. More than 60% of analysts value the three shares of Chinese electric vehicles (NIO, Li and XPeng) in Buy. The average share purchase rating ratio at
Dow Jones industrial average
it is approximately 57%.
For XPeng, 67% of analysts covering the company value shares in Buy. The average average price of the analyst is about $ 49 per share.
Monday should be an interesting day. Investors also have to deal with recent Tesla Model Y prices in China. The Model Y crossover is priced lower than the NIO EC6. The XPeng EV crossover, the G3 model, is priced lower than the NIO and Tesla crossovers. But any investor concerns about price cuts could be offset by this weekend’s delivery numbers.
Write to Al Root at [email protected]