Nio, China EV Stocks To Report Sales Amid Production Slowdown

Nio (NIO), Xpeng (XPEV), Li Auto (LI) and BYD Auto (BYDDF) are expected to report monthly and Q1 sales numbers in the coming days. Nio stock and other EV stocks rose.




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Electric-vehicle sales in China for March could show big gains vs. February, which included the weeklong Lunar Year holiday.

But EV production has also been hampered by chip and battery shortages. Nio stock fell earlier this month, when management lowered its Q1 sales forecast by 500-1,000 vehicles to 19,500, tying a production hit to the chip shortage.

Tesla (TSLA) is expected to report global Q1 deliveries later this week. Analysts expect 170,000 units.

Last month, the China Passenger Car Association reported that Tesla sold 18,318 vehicles in China in February. Meanwhile, Xpeng delivered 2,223 in February and indicated sales will jump to 4,262 in March. Nio sold 5,578 in February, while Li Auto delivered 2,300 Li ONEs. Warren Buffett-backed BYD Auto sold 10,355 new energy vehicles.

Singapore-based industry tracker Canalys forecasts EV sales of 1.9 million vehicles in China in 2021, vs. 1.3 million in 2020. In total, they will account for a 9% share of all cars sales in China vs. 6.3% in 2020.


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Nio Stock, China EV Stocks

Nio stock rose 2.2% to 38.38 on the stock market today, and is finding support at the 200-day line. A February breakout past a 57.30 entry failed, and there’s no new buy point in sight, according to MarketSmith chart analysis. Among other China-based EV stocks, Xpeng surged 8.5%, and Li Auto shares jumped 8.3%.

Tesla stock rallied 4.2% to 661.43. The relative strength line is trending higher again, as the stock recently got a boost from President Biden’s infrastructure plan calling for $174 billion in EV spending.

Wedbush analyst Daniel Ives says consumer demand remains robust even as EV production hits a few road bumps.

“Despite the noise/chip shortage, Tesla saw strength in China and the U.S. with EV consumer demand patterns that continued to improve discernibly since the beginning of January with strength seen for Tesla in the months of February and March particularly in China,” Ives said in a note to clients.

The sell-off in Nio stock and other EV stocks “creates a massive buying opportunity” to own Chinese EV players as well as Tesla, Ives added.

“While the stocks and the EV space are clearly going through a painful digestion period, we view this as a short-term pullback in a multi-year upward rally,” he wrote. “We forecast the EV market represents a $5 trillion total addressable market over the next decade with many EV/OEMs/supply chain players poised to be major winners over the coming years.”

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.

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