Do You Have These Chinese Electric Vehicle Stocks On Your Watchlist?
Investors keeping up with the electric vehicle (EV) industry would have noticed that Chinese EV companies have been on roll lately. While the broader stock market continues to seek direction, Chinese EV stocks have continued to edge higher over the past month. Well, it is that time of the month again when major EV companies post their delivery numbers. On Saturday, industry leader Tesla (NASDAQ: TSLA) announced a relatively underwhelming second-quarter vehicle deliveries result. Most analysts expected the company to deliver around 304,000 vehicles for the quarter, but it fell short at 254,695.
Having said that, it is worth noting that an “ongoing supply chain challenge and factory shutdowns” that were beyond the company’s control played a huge factor. The company claims that June was the “highest vehicle production month in Tesla’s history.” Perhaps, investors can expect a strong third quarter as the worst may well be over. On top of that, all the major Chinese EV companies such as Nio, Xpeng, Li Auto, and BYD also had strong delivery numbers. Not to mention, with oil prices remaining high, more consumers could be making the switch to EVs. Building on these sentiments, here are four of the top Chinese EV stocks worth noting in the stock market today.
Chinese Electric Vehicle Stocks To Watch This Week
First up, let us look at the China-based EV producer, Li Auto. Essentially, the company specializes in the design, development, manufacture, and sale of smart electric automobiles. The major products of the company are its sport utility vehicles (SUVs) sold under the Li ONE brand. In addition, the company also sells accessories and offers related services such as charging stations, vehicle Internet connection services, and extended lifetime warranties. LI stock has been riding on strong bullish momentum, rising by almost 30% over the past month.
Last Friday, Li Auto announced its June 2022 delivery update. For June, the company delivered 13,024 Li ONEs, an increase of 68.9% year-over-year. In the second quarter, Li Auto made 28,687 deliveries, representing a 63.2% increase year-over-year. Meanwhile, the company as of June 30, 2022, has a total of 247 retail outlets in 113 cities, as well as 308 service centers and Li Auto-authorized body and paint shops in 226 cities. Aside from that, investors should note that the company recently unveiled its flagship smart SUV for families, the Li L9. The vehicle will come with the company’s features such as the Li AD Max autonomous driving system, and top-notch vehicle safety measures. Given these exciting developments, should investors be paying more attention to LI stock?
Let us not forget one of the pioneers of EV in China, Nio. Similar to Li Auto in many ways, the company principally specializes in the production and development of premium smart EVs. As it stands, its products mainly include ES8, ES6, EC6, and ET7. Not to mention, Nio develops battery swapping technologies and autonomous driving technologies. While NIO stock has been up by 10% over the past month, it is noteworthy that the stock is down by more than 55% over the past year. So, the question remains, could NIO stock keep up its momentum to close the second half of the year strong?
Well, there are reasons to believe that this could be possible. The company started the month of July by announcing its June and second-quarter 2022 delivery results. In June, NIO delivered 12,961 vehicles, up 60.3% year-over-year. For the second quarter, NIO delivered 25,059 vehicles, representing an increase of 14.4% year-over-year. Furthermore, NIO unveiled the ES7 last month, a brand new mid-large five-seater smart EV SUV. This will be the first SUV product based on the NIO Technology 2.0. All in all, NIO appears to be trending in the right direction. With that in mind, would you consider adding NIO stock to your watchlist?
Another top EV name to note within the region is Xpeng. The company’s primary products are environmentally friendly vehicles, namely the G3 SUV and the P7 four-door sports sedan. Xpeng’s Smart EVs primarily target the mid-to-high-end segment in China’s passenger vehicle market. Besides that, it also provides a range of services to its clients. This includes supercharging services, maintenance services, ride-hailing services, and vehicle leasing services. XPEV stock has climbed more than 20% over the past month.
Last month, the company announced that it has reached a milestone of 200,000 cumulative smart EV deliveries. Building on this momentum, Xpeng is showing little to no signs of slowing down. For the month of June, Xpeng recorded monthly deliveries of 15,295 Smart EVs, representing a 133% increase year-over-year, and 51% compared to May 2022. Meanwhile, the company delivered 34,422 Smart EVs in total for the second quarter of 2022. This ranks the company first among emerging auto brands in China for the fourth consecutive quarter. All things considered, would you be keeping a close tab on XPEV stock right now?
Last but not least, we have the Warren Buffett-backed transportation company, BYD. For those unaware, its primary business involves the manufacture and sales of transportation equipment, including electric vehicles and buses. Besides that, BYD also engages in the manufacture and sale of electronic parts and components and electronic devices for daily use. Despite a relatively flat start to the year, BYDDF stock has been picking up steam lately. The stock has risen more than 14% since the start of the year.
Over the weekend, BYD reported that its sales of new energy vehicles more than tripled in June to 134,036 from 41,036 a year earlier. Additionally, its sales in the first half of the year skyrocketed by 315% year-over-year to 641,350. Despite devastating lockdown restrictions in parts of China, BYD was able to keep up with the demands of its customers. These sales figures may well suggest that the company has overcome any coronavirus-related issues and could continue to grow in the coming years. Keeping this in mind, would you consider BYDDF stock as a top Chinese EV stock to watch now?