Nio, Li Auto stocks drop as COVID-19 resurgence leads to weak April delivery data

Shares of NIO Inc. and Li Auto Inc. fell Monday, after the China-based electric vehicle makers reported sharp drops in April deliveries, as they both cited supply chain challenges resulting from a new wave of COVID-19 outbreaks.

It may be no coincidence that the NIO
and Li Auto
releases on Sunday didn’t provide year-ago comparisons of April deliveries, even though their releases usually do, while XPeng Inc.
did provide a comparison as deliveries increased.

Shares of NIO sank 2.1% in premarket trading and Li Auto’s stock slid 2.0%, while XPeng’s stock slipped 0.5%.

Meanwhile, shares of Tesla Inc.
which derived 24.8% of its first-quarter revenue and 25.7% of 2021 revenue from China, took a 0.9% hit in premarket trading. The decline adds to the 19.2% tumble in April, which was the worst monthly performance since it plunged 21.6% in March 2020.

NIO said on Sunday that it delivered 5,074 vehicles in April, which was 28.6% below what was announced a year ago. The company said its April deliveries included 1,251 ES8s, 1,878 ES6s, 1,252 EC6s and 693 ET7s.

“In late March and April 2022, the Company’s vehicle production and delivery have been impacted by the supply chain volatilities and other constraints caused by a new wave of the COVID-19 outbreaks in certain regions in China,” the company said in a statement. “The vehicle production has been recovering gradually.”

The release comes three weeks after NIO warned of delivery delays, citing production suspensions.

Li Auto said it delivered 4,167 Li ONEs in April, down 24.8% from the 5,539 deliveries announced last year.

The company blamed the COVID-19 resurgence in the Yangtze Delta region for “severe industry-wide disruptions” in supply chain, logistics and production since late March.

Bucking the trend, XPeng said April deliveries rose 75% to 9,002 EVs, with deliveries consisting of 3,714 P7 sports sedans, 3,564 P5…


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