Nio and XPeng Post Strong, Rebounding March Deliveries

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.