XPeng stock swings to a loss after drop in monthly deliveries, while other China-based EVs surge

The U.S.-listed shares of XPeng Inc. fell Tuesday after October deliveries were reported, to buck the rally in other China-based electric vehicle makers, which was fueled by glimmers of hope that China will relax the zero-COVID policy that has slowed the country’s economy.

XPeng Inc.’s U.S.-listed stock
XPEV,
-3.17%

rallied as much as 5.1% intraday, before pulling a sharp U-turn to fall 1.7% in afternoon trading toward a third-straight record-low close. The decline extends the record-monthly loss of 44.6% suffered in October.

The stock’s previous record monthly loss was suffered the month before, when it tumbled 35.5% in September. The stock had plummeted 79.1% amid a four-month losing streak through Monday.

The company reported earlier that it delivered 5,101 electric vehicles in October, or a little more than half the 10,138 vehicles delivered in the same month a year ago, and down from the 8,468 vehicles delivered a month ago. The latest month’s deliveries included 2,104 P7 sports sedans, 1,665 P5 family sedans and 709 G3i compact sport-utility vehicles (SUVs).

Separately, XPeng said it obtained the Guangzhou Intelligent Connected Vehicle Road Test Permit for the XPENG G9, the first unmodified commercial vehicle to qualify for autonomous driving tests on public roads in China.

Meanwhile, XPeng’s main China-based rivals reported year-over-year increases in October deliveries.

Nio Inc.’s stock
NIO,
+0.41%

bounced 2.1% in afternoon trading Tuesday, after shedding 38.7% in October. That was the worst monthly performance since it plummeted 45.5% in September 2019.

Nio reported before Tuesday’s open October deliveries of 10,059 EVs, up 174.3% from the 3,667 vehicles delivered a year ago, and to bring the year-to-date total deliveries to 259,563 EVs.

The company noted that in October, it unveiled the ET7 and ET5 sedans and the EL7 five-seater electric SUV for the European markets.

The stock’s rally also comes as The Wall Street Journal reported, as did several other media outlets, that China’s stock markets appeared to rally after an anonymous social-media post in China suggesting the government may soften COVID-related restrictions, which have hampered economic growth, starting in March. The reports helped propel Hong Kong’s Hang Seng Index HK:HSI 5.2% higher and the Shanghai Composite Index CN:SHCOMP up 2.6%.

The iShares China Large-Cap exchange-traded fund
FXI,
+4.25%

surged 4.8% Tuesday, while the S&P 500 index
SPX,
-0.41%

shed 0.4%.

Also, Li Auto Inc.’s stock
LI,
+6.90%

climbed 6.9%, after a monthly-record loss of 40.8% in October to close Monday at a record low. The stock had slumped 64.4% amid a four-month losing streak through Monday.

Li reported earlier October deliveries of 10,052 EVs, up 31.4% from a year ago. The company has now delivered a total of 221,067 EVs this year.

Separately, shares of U.S.-based EV giant Tesla Inc.
TSLA,
+0.12%

edged up 0.2% in afternoon trading. The company had generated $5.13 billion in revenue from its China operations during the third quarter, or 23.9% of total revenue of $21.45 billion.

A year ago, China-based revenue of $3.11 billion was 22.6% of total revenue of $13.76 billion.

Source: https://www.marketwatch.com/story/xpeng-stock-bounces-off-record-low-despite-drop-in-deliveries-other-china-based-evs-also-surge-11667305379?siteid=yhoof2&yptr=yahoo