Strong March deliveries reinvigorated shares of Nio (NYSE:NIO) and Xpeng (NYSE:XPEV) last week. Expect buyers to step in from here.
In March, XPeng, a leading Chinese smart electric vehicle company posted March and Q1 delivery results. It delivered 2,855 P7s, its sports smart sedan, and 2,247 G3s, its smart compact SUV. This total is a nearly four-fold increase (up 384%) from last year.
In Q1, Xpeng delivered 13,340 smart EVs, up 487% from last year. The results are especially impressive because the quarter is usually the slowest period of the year.
Nio delivered 7,257 units in March, up 373% Y/Y. The 20,060 unit deliveries in the quarter, up 423%, is nearly double that of Xpeng’s results.
Investors may question Nio’s $65.5 billion market cap being double that of XPEV’s at $29.54 billion. But Nio has a battery as a service offering. Still, with 1.21 billion shares outstanding for Nio compared to XPEV’s at ~ 400 million, Nio has more liquidity on the exchanges.
Both firms may still issue shares to raise much-needed capital. Last year, the companies sold stock amid their stock rally. Strong demand limited the dip. This year, continued unit sales growth may drive optimism in both firms.
Tech Insider
