Share prices for electric vehicle makers Nio and Xpeng plunged more than 10% on Tuesday despite triple-digit annual growth in November deliveries. Investors were unimpressed with growth numbers bolstered by a very low base in 2019 when China’s EV sales sank by nearly half after government subsidies were slashed.
On the same day, news broke that Congress is likely to pass legislation this week forcing Chinese companies delist from US stock markets with new audit-oversight rules.
Nio delivered 5,291 electric crossovers in November, more than doubling the number in the same month last year, according to an announcement from Monday. However the EC6 drove growth with a 71% month-on-month rise while the ES8 and ES6 declined slightly from a month earlier. The growth rate slowed to 4.7% on a monthly basis.
The EV maker, backed by the government of Hefei city in eastern China, said that it is expanding the manufacturing capacity of its Hefei plant to meet order growth but did not disclose the number of order backlogs. The company in September reached a monthly capacity of 5,000 units on a single shift and aims to increase the number by 50% by January, CEO William Li said during its third-quarter earnings call.
Xpeng Motors recorded deliveries of 4,224 EVs in November, up by 342% year on year and 38.9% sequentially. A low base in 2019 and a dip in October a result of competition from Tesla’s China-made Model 3 boosted the comparisons. The Guangzhou-based EV maker sold 1,016 G3 sports utility vehicles in the same month a year ago, according to figures from industry group China Passenger Car Association. It forecasted deliveries of around 10,000 vehicles for the fourth quarter.
Li Auto reported November deliveries of 4,646 EVs after market close on Monday, growing 25.8% on a monthly basis. The Beijing-based EV maker, which began vehicle deliveries last December, said the number of deliveries as well as new orders in November surpassed 5,000 units.