Nio and Li Auto monthly deliveries hit record numbers as China eases Covid policy

On Wednesday, November 30, shares of Nio Inc (NYSE: NIO), XPeng Motors (NYSE: XPEV), and Li Auto (NASDAQ: LI) all jumped by more than double figures percentage gains.

The value of Chinese electric vehicle stocks skyrocketed on Tuesday, November 28, and continued to soar on Wednesday, November 29. XPeng shares skyrocketed, leading a broad rally for China electric vehicle companies due to a better-than-feared delivery projection for the fourth quarter.

The companies were also boosted by the latest indications of a possible shift in China’s strict COVID policy, which has been a burden for automotive manufacturers. On Wednesday, local authorities proceeded to loosen some of the ‘zero-Covid’ guidelines that had been put in place after demonstrations against the policy were held in many locations over the weekend.

On December 1, the three EV makers also published positive delivery sales for November as the Covid overhang started to lift.

NIO chart and delivery analysis 

Nio finished trading at $12.78, up +2.28 (21.71%) on the day. In the last month, Nio has changed hands between $9.03 – $13.27 and is currently trading near the high of this range. Resistance exists at $17.42 from a trend line in the weekly time frame.

Prices have been extended to the upside lately, and for a solid entry, it would be prudent to wait for a period of consolidation.

NIO announced record high monthly deliveries as it delivered 14,178 vehicles in November 2022, increasing by 30.3% year-over-year. The EV maker delivered 106,671 vehicles year-to-date in 2022, rising by 31.8% year-over-year.

LI chart and delivery analysis 

Li closed at $22.00 +3.47 (18.73%) on November 30. In the last month, LI has been trading between $15.37 – $23.04 and is currently trading in the middle of its 52-week range, which is in line with the S&P 500 Index.

Since prices have been climbing sharply over the past few days, it could be prudent to hold off on contemplating an entrance until the stock has either stabilized or pulled down before doing so. Support exists at $17.04 from a trend line in the daily time frame.

Li announced on December 1 that the company set a new delivery record; it delivered 15,034 vehicles in November 2022, achieving record-high monthly deliveries and representing an 11.5% year-over-year increase.

XPEV chart and delivery analysis 

Xpeng closed at $10.81 +3.47 (47.28%) on the day. XPEV has been trading in the $6.18 – $10.96 range in the last month. Volume has been considerably higher in a previous couple of days. Since prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry. Nevertheless, resistance is observed at $23.95 from a horizontal line in the daily time frame.

In November, XPeng delivered 5,811 Smart EVs to customers as it mitigated challenges brought about by COVID-related restrictions and disruptions. As of November 30, 2022, year-to-date deliveries reached 109,465, representing a 33% increase year-over-year.

Europe’s 2022 EV sales grow 

Overall, sales of electric vehicles in China remained strong during the first 11 months of 2022, even though the country faced uphill challenges. Concurrently, sales of electric vehicles in Europe grew in the third quarter of 2022 despite the fact that the region was also facing its own economic dilemmas.

Data acquired and calculated by Finbold on November 29 indicates that as of Q3 2022, the total number of Battery Electric (BEV) and Plug-in Hybrid Electric (PHEV) new passenger vehicles registrations in Europe stood at 571,377, a quarterly increase of about 1.98% from Q2’s value of 560,266. 

A quarterly analysis of vehicle sales shows that there were 355,336 BEVs in Q3, up from 322,144 in Q2. In addition, the overall number of registered PHEVs in the third quarter of 2022 was 216,041, a decrease from the previous quarter’s total of 238,122.

Finally, with NIO and XPeng already selling in some markets inside Europe, the Beijing-based automaker LI will be looking for partnerships to start selling EVs in Europe as soon as next year.

Rivian (NASDAQ: RIVN), which is expected to raise production in 2023 to meet the rising demand and ultimately extend over to the continent, is one example of a company that might pose a threat to new Chinese electric vehicle manufacturers who are interested in expanding their operations in Europe.

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