Chinese electric car manufacturers
Li Auto reported April deliveries Sunday morning. The numbers are not very good. It gives
Tesla investors something else to worry about.
NIO (ticker: NIO) delivered 5,074 vehicles in April, down from approx. 10,000 delivered in March and down from approx. 7,100 delivered in April 2021.
Looking ahead, Wall Street expects NIO to deliver around 31,000 vehicles in the second quarter, up from around 26,000 delivered in the first quarter of 2022. This is not a good start.
Covid seems to be the cause. “At the end of March and April 2022, the company’s vehicle production and delivery have been affected by supply chain volatility and other constraints caused by a new wave of COVID-19 outbreaks in certain regions of China,” the NIO said in a statement.
It’s no surprise. Investors have known about Covid-related manufacturing problems in China for several weeks. Covid blockades in Shanghai, for example, closed Tesla’s facilities in the area for several weeks, costing Tesla (TSLA) perhaps 15,000 vehicle deliveries in the first quarter of 2022. Tesla ended up delivering around 310,000 vehicles, just up from the 309,000 which was delivered in the fourth quarter of 2021.
Li Auto (LI) delivered 4,167 vehicles in April, down from approx. 11,000 delivered in March and down from approx. 5,500 delivered in April 2021.
Looking ahead, Wall Street expects Li sales to grow to around $ 1.9 billion in the second quarter, up from around $ 1.5 billion estimated in the first quarter. Li delivered nearly 32,000 vehicles in the first quarter of 2022.
Li also spoke about Covid in its press release: “The Covid-19 boom in the Yangtze Delta has continued to cause severe industry-wide supply chain, logistics and manufacturing disruptions since the end of March.” Li makes cars in Changzhou, in the center of the region, and gets most of the parts for his cars locally.
XPeng (XPEV) results look a little better than Li or NIO numbers. XPeng delivered 9,002 vehicles in April, down from approx. 15,000 vehicles delivered in March, but up from approx. 5,000 delivered in April 2021.
Looking ahead, Wall Street expects XPeng sales to grow to around $ 1.3 billion in the second quarter, up from around $ 1.1 billion estimated for the first quarter of 2022. XPeng delivered nearly 35,000 vehicles in the first quarter of 2021.
XPeng also referred to Covid in its press release.
In total, the three delivered around 18,000 vehicles in April. This is the worst monthly result since May 2021 and below the approximately 21,000 combined vehicles delivered in February 2022 – when the Chinese lunar New Year holiday affected the results. But the silver lining is year-to-date, deliveries are up 73% from year to year, driven by gains from Li and XPeng.
Li Auto shares have fallen 0.6% in pre-market trading on Monday, while XPeng has risen 1.1% and Nio has fallen 0.4%.
The shares of the three companies have already been heavily beaten. When trading on Monday, the NIO, XPeng and Li shares are down more than 40% so far this year on average, far worse than the corresponding declines of 13% and 21%.
Nasdaq Composite Index.
Delivery results can also spread to Tesla trade. Tesla’s Shanghai plant is the most productive. However, Wall Street’s delivery expectations for Tesla in the second quarter do not look as aggressive as for the other three. Analysts estimate that Tesla will deliver around 305,000 cars in the second quarter, down from 310,000 from the first quarter.
Tesla shares have also been beaten, falling 19% in April, partly due to the market – Nasdaq was down 13% – and partly because investors weighed the impact of CEO Elon Musk’s surprise plan to buy
Twitter (TWTR) on his car company. That may explain why the Tesla stock has risen 0.4% on Monday morning.
There is a lot of bad news already in the stock.
Write to Al Root at firstname.lastname@example.org