Chinese electric vehicle majors, Li Auto (LI), NIO (NIO), and XPeng (XPEV), announced their deliveries for the month of March and the first quarter of 2023. Both NIO and Li Auto witnessed decent year-over-year growth, but XPeng reported sharp declines in delivery numbers.
Li Auto: Delivery Numbers Impress
Out of the three automakers, Li Auto made the highest number of deliveries. In March, the company delivered 20,823 vehicles, an increase of 88.7% over the year-ago quarter. Its Q1 deliveries also increased by 65.8% to 52,584. At the end of March, Li Auto had cumulative deliveries of 309,918 vehicles.
According to Li Auto’s CEO, Xiang Li, the company captured nearly 20% of the market share in the Chinese SUV segment in the price range of RMB300,000 to RMB500,000. Also, the company expects to begin deliveries of its Li L7 Air and Li L8 Air models in April.
NIO: EV Sales Rise
Moving on, NIO’s monthly deliveries climbed nearly 4% in March to 10,378 units. Moreover, the company’s Q1 deliveries increased by 20.5% year-over-year to 31,041 vehicles and came within the guided range of 31,000 and 33,000 vehicles.
In addition, NIO highlighted plans to install 1,000 Power Swap stations by 2023 and quicken the growth of the battery-swapping network.
XPeng: Disappointing Data
Meanwhile, XPeng reported disappointing numbers. Its vehicle deliveries fell 54.6% year-over-year to 7,002. For the first quarter, the company witnessed a 47.2% decline in deliveries to 18,230 units.
Nevertheless, the company stated that orders for its new sports sedan, the P7i, launched in China last month, are gaining momentum. In addition, XPeng started introducing its XNGP advanced driver assistance system to China.
Is it Good to Invest in EV Stocks Now?
China is one of the fastest-growing EV markets and is home to Chinese EV start-ups, including NIO, XPeng, and Li Auto. Also, major U.S. players like Tesla (TSLA) and Ford Motors (F) are present in the country. According to Counterpoint Research, EV sales are expected to reach more than 8 million units by the end of this year.
Turning to Wall Street, analysts are bullish on Li Auto, as it has a Strong Buy consensus rating. That’s based on five unanimous Buys assigned in the past three months. The average Li Auto price target of $37.30 implies 49.5% upside potential.
Meanwhile, Nio has a Moderate Buy consensus rating based on six Buy and four Hold recommendations. The average NIO price target of $14.73 implies 40.2% upside potential.
Lastly, XPeng has a Hold consensus rating. That’s based on two Buys, four Holds, and three Sells assigned in the past three months. The average XPEV stock price target of $10.05 implies 9.5% downside potential.
