The company’s hybrid strategy appears to be paying off - with its Li ONE SUV, which is priced at about $46,000 - ranking as the top-selling SUV in the new energy vehicle segment in China in September 2020. This reduces the need for EV-charging infrastructure, which is currently limited in China. Li Auto sells Extended-Range Electric Vehicles, which are essentially EVs that also have a small gasoline engine that can generate additional electric power for the battery. While the company has scaled up production, it hasn’t come without challenges, as it recalled about 5,000 vehicles last year after reports of multiple fires. The company is working on developing self-driving technology and also offers other unique innovations such as Battery as a Service (BaaS) - which allows customers to subscribe for car batteries, rather than paying for them upfront. Nio, which was founded in 2014, currently offers three premium electric SUVs, ES8, ES6, and EC6, which are priced starting at about $50k. Overview Of Nio, Li Auto & Xpeng’s Business The company began production only late last year. Li Auto (NASDAQ NDAQ: LI), a company that sells EVs that also have a small gasoline engine - said that it delivered 3,692 of its Li ONE SUVs in October, marking a month-over-month increase of about 5%. However, deliveries were slightly lower month-over-month. Xpeng (NYSE: XPEV), another premium EV player saw its stock rise by about 7%, as it delivered about 3,040 vehicles through the month, marking an increase of about 230% from a year ago, driven primarily by sales of its P7 sedan which was launched earlier this year. Nio - one of the largest EV startups in China - saw its stock soar by about 9%, as it reported that deliveries in October almost doubled year-over-year to 5,055 vehicles. listed Chinese electric-vehicle manufacturers soared on Monday, as they reported strong deliveries for October.
Strong October Deliveries Drive Chinese EV Stocks While Nio’s growth rates are certainly higher than Tesla’s, the risks are also higher given the intense competition in the Chinese EV space where there are over 400 manufacturers. Nio is also very richly valued at about 26x projected 2020 Revenues, compared to Tesla which trades at about 12x.
For example, Nio recalled about 5,000 vehicles last year after reports of multiple fires. The company could also face challenges further scaling up production.
Nio deliveries december 2020 software#
In addition to a potentially lower price, Tesla’s stronger brand image and software features could make its vehicles much more attractive to customers. Firstly, there is a possibility that Tesla could give Nio a run for its money in its home turf, as it prepares to launch a locally made Model Y SUV, which reports indicate could be priced cheaper than Nio’s entry-level SUV ES6, which starts at $54k. While Nio is no doubt growing quickly, with Revenue on track to double this year, the stock looks overvalued in our view for a couple of reasons. After a 12x rally year to date, Nio’s market cap is now higher than General Motors GM. Nio - the premium Chinese EV manufacturer - has seen its stock soar a whopping 58% over the last month trading at about $45 per share, driven by strong delivery numbers for October and a conducive regulatory environment in China for EVs.
0 kommentar(er)
