Hector Retamal/AFP via Getty Images
Chinese electric-vehicle maker
delivered 5,686 vehicles in May, up from the previous month. That’s boosting shares, but it isn’t the only reason XPeng stock is higher Tuesday.
XPeng stock (ticker: XPEV) stock is up 8% to $34.71 in Tuesday trading. The
and
are up 0.1% and 0.3%, respectively.
The May figure is more than 500 vehicles higher than the 5,147 delivered in April and third consecutive monthly increase. That’s good news for EV investors that expect to see growth.
But deliveries are still below the monthly delivery peak around 6,000 vehicles. XPeng (ticker: XPEV), along with other auto makers, is struggling with a global semiconductor shortage that is constraining production.
XPeng’s news release didn’t include a material update on the shortage, but XPeng competitor
(NIO) did in its monthly delivery release on Tuesday. NIO said the shortage wouldn’t effect its ability to deliver 21,000 to 22,000 vehicles in the second quarter, and it expects deliveries to accelerate in June up to 8,000. That would be a new monthly record—and a sign that Chinese EV demand remains strong and the global chip shortage pressures are easing.
NIO stock also rose Tuesday, climbing 5.2%. NIO stock got a separate boost Tuesday when Citigroup analyst Jeff Chung upgraded shares to Buy from Hold.
The delivery update and NIO upgrade are helpful for weary EV investors. Coming into Tuesday trading, XPeng and NIO shares have fallen about 25% and 20%, respectively.
The reasons for the declines extend beyond the chip shortage. Rising interest rates hurt shares of high-growth, richly valued stocks—such as NIO and XPeng—more than others. And EV competition has been ramping up in 2021.
(TSLA), for instance, started delivering its Model Y in China in January.
The declines also come after big gains. NIO stock rose more than 1,100% in 2020. XPeng held its initial public offering in the summer of 2020, so it doesn’t have a full-year 2020 gain to compare. But the stock trades at more than double its $15 IPO price.
With the NIO upgrade, about 68% of analysts covering NIO stock rate shares Buy. XPeng stock is even more popular: More than 80% of analysts covering the company rate its shares Buy. The average Buy-rating ratio for stocks in the S&P is roughly 55%.
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