Do you have these Chinese EV stocks on your watch list?
Investors who follow the electric vehicle (EV) industry would have noticed that Chinese EV companies have been on the right track lately. As the broader stock market continues to search for direction, Chinese electric vehicle stocks have continued to climb over the past month. Well, it’s that time of the month again when the big EV companies release their delivery numbers. Saturday, the industry leader You’re here (NASDAQ: TSLA) announced a relatively disappointing result for vehicle deliveries in the second quarter. Most analysts expected the company to deliver around 304,000 vehicles for the quarter, but it fell short of 254,695.
That said, it should be noted that a “Permanent Supply Chain Challenge and Plant Closures” that were beyond the company’s control played an important role. The company claims that June was the “Highest vehicle production month in Tesla history.” Investors can perhaps look forward to a strong third quarter as the worst may be over. In addition to this, all major Chinese electric vehicle companies such as Nio, Xpeng, Li Auto and BYD also recorded good delivery figures. Not to mention that with oil prices remaining high, more consumers could switch to electric vehicles. Building on those sentiments, here are four of the top Chinese electric vehicle stocks to note in the stock market today.
Chinese electric vehicle stocks to watch this week
First, let’s look at the China-based electric vehicle producer, Li-Auto. The company mainly specializes in the design, development, manufacture and sale of intelligent electric automobiles. The company’s main products 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 enjoyed strong bullish momentum, rising nearly 30% over the past month.
Last Friday, Li Auto announced its June 2022 delivery update. For June, the company delivered 13,024 Li ONEs, a 68.9% year-on-year increase. In the second quarter, Li Auto completed 28,687 deliveries, representing a year-on-year increase of 63.2%. Meanwhile, the company, as of June 30, 2022, has a total of 247 sales outlets in 113 cities, as well as 308 service centers and Li Auto-authorized body and paint shops in 226 cities. Apart 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 pay more attention to LI stocks?
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Let’s not forget one of the EV pioneers in China, Nio. Similar to Li Auto in many ways, the company mainly specializes in the production and development of high-end smart electric vehicles. As it stands, its products mainly include ES8, ES6, EC6 and ET7. Not to mention that Nio is developing battery swap technologies and self-driving technologies. While NIO stock is up 10% in the past month, it’s worth noting that the stock is down more than 55% in the past year. So the question remains, could NIO stock maintain its momentum to end the second half strong?
Well, there’s reason to believe it might be possible. The company started 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 a 14.4% year-over-year increase. Additionally, NIO last month unveiled the ES7, an all-new mid-size five-seat smart EV SUV. It will be the first SUV product based on NIO 2.0 technology. Overall, NIO seems to be moving in the right direction. With that in mind, would you consider adding NIO stocks to your watchlist?
Another VE name to note in the area is Xpeng. The company’s main products are environmentally friendly vehicles, namely the G3 SUV and the P7 four-door sports sedan. Xpeng’s smart electric vehicles primarily target the mid to high-end segment of China’s passenger vehicle market. In addition to this, it also provides a range of services to its customers. This includes boosting services, maintenance services, ride-sharing services, and vehicle rental services. XPEV stock has climbed more than 20% in the past month.
Last month, the company announced that it had reached the milestone of 200,000 cumulative smart electric vehicle deliveries. Building on this momentum, Xpeng shows little to no signs of slowing down. For the month of June, Xpeng recorded monthly deliveries of 15,295 smart electric vehicles, which represents an increase of 133% year-on-year and 51% compared to May 2022. Meanwhile, the company delivered a total of 34,422 smart electric vehicles for the second quarter of 2022. This places the company as the top emerging auto brand in China for the fourth consecutive quarter. All things considered, would you keep a close eye on XPEV stock right now?
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Last but not least, we have the transportation company backed by Warren Buffett, BYD. For those unaware, its core business is the manufacture and sale of transportation equipment, including electric vehicles and buses. In addition to this, BYD is also engaged in the manufacture and sale of electronic parts and components and daily-use electronic devices. Despite a relatively flat start to the year, BYDDF stock has been gaining momentum lately. The stock has risen more than 14% since the start of the year.
Over the weekend, BYD said 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 soared 315% year-over-year to 641,350. Despite devastating lockdown restrictions in parts of China, BYD was able to meet the demands of its customers. These sales figures may well suggest that the company has overcome all the problems related to the coronavirus and could continue to grow in the years to come. With that in mind, do you consider BYDDF stock to be one of the top Chinese EV stocks to watch now?
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