Nio’s (NYSE:NIO) monthly delivery figures are a consistently bullish event for its stock. In June, the Chinese EV maker posted a 20.4% monthly rise in deliveries, up by 116% from last year.
Nio delivered 8,083 vehicles last month. Its biggest seller is the ES6 at 3,755 units. Markets braced for poor figures because of the chip shortage. This suggests that management has a good supply chain that will meet consumer EV demands. Ahead of the news, NIO shares already rallied from a sub $35 low, topping almost $55 recently. The stock may pull back from here on profit-taking. This gives investors who missed buying the stock last year another chance to start a small position.
Nio is a dominant EV player in China. Global demand for clean vehicles will only keep rising. Constrained supplies will limit vehicle availability, lifting Nio’s profit margins.
XPeng (NYSE:XPEV), like Nio, also posted strong Q2 deliveries. In June, it delivered 6,565 smart EVs, a six-fold (617%) increase from last year. Its 4,730 P7 delivery count is also a record. China’s consumers want the latest, most innovative EV and XPeng is the answer.
XPeng’s margins will expand as the XPilot software upgrade pays off. Consumers are willing to pay a subscription for the software. So, as XPeng sells more units, software subscription profits will expand.
Both NIO and XPEV stock are good long-term investments.
