Tesla Stock gets insight from NIO, other Chinese EV makers. It was not good.

A Covid outbreak in China, which forced production shutdowns, weighed on April production figures for electric vehicle makers.

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Chinese electric vehicle manufacturers





reported April deliveries on Sunday morning. The numbers are not very good. It gives

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investors something else to worry about.

NIO (ticker: NIO) delivered 5,074 vehicles in April, compared to approximately 10,000 delivered in March and compared to approximately 7,100 delivered in April 2021.

Looking ahead, Wall Street expects NIO to deliver around 31,000 vehicles in the second quarter, compared to around 26,000 delivered in the first quarter of 2022. That’s not a good start.

Covid seems to be the reason. “In late March and April 2022, the company’s vehicle production and delivery were impacted by supply chain volatilities and other constraints caused by a new wave of COVID-19 outbreaks in parts of China,” read the NIO press release.

It is not a surprise. Investors have been aware of China’s Covid-related production issues for weeks. Covid lockdowns in Shanghai, for example, shuttered Tesla’s factory in the region for weeks, costing Tesla (TSLA) perhaps 15,000 vehicle deliveries in the first quarter of 2022. Tesla ended up delivering around 310,000 vehicles, just up from the 309,000 delivered in the fourth. quarter 2021.

Li Auto (LI) delivered 4,167 vehicles in April, compared to around 11,000 delivered in March and around 5,500 delivered in April 2021.

Looking ahead, Wall Street expects Li’s sales to hit about $1.9 billion in the second quarter, compared to about $1.5 billion expected in the first quarter. Li delivered nearly 32,000 vehicles in the first quarter of 2022.

Li also spoke about Covid in his press release: “The resurgence of COVID-19 in the Yangtze River Delta region continues to cause severe industry-wide disruptions in supply chain, logistics and production since the end of March”. Li manufactures cars in Changzhou, in the center of the region, and sources most parts for his cars locally.

The XPeng (XPEV) results seem a bit better than the Li or NIO numbers. XPeng delivered 9,002 vehicles in April, up from around 15,000 vehicles delivered in March, but up from around 5,000 delivered in April 2021.

Looking ahead, Wall Street expects XPeng sales to reach around $1.3 billion in the second quarter, compared to around $1.1 billion forecast for the first quarter of 2022. XPeng has shipped nearly 35 000 vehicles in the first quarter of 2021.

XPeng also referenced Covid in its press release.

Together, the three delivered around 18,000 vehicles in April. It was the worst monthly result since May 2021 and lower than the roughly 21,000 combined vehicles delivered in February 2022, when the Chinese Lunar New Year holiday impacted results. But the silver lining is year-to-date shipments are up 73% year-on-year, driven by gains from Li and XPeng.

All three stocks opened lower on Monday, then turned positive. Li’s shares rose 2.9%. NIO stock gained 1.7% and XPeng stock gained 1.3%.

Shares of all three companies have already taken a beating. As markets opened on Monday, shares of NIO, XPeng and Li were down more than 40% since the start of the year on average, much worse than the respective declines of 13% and 21% in the



Nasdaq composite index.

The delivery results could also impact Tesla’s trading. Tesla’s Shanghai factory is the most productive. Tesla’s second-quarter delivery expectations on Wall Street, however, don’t look as aggressive as those of the other three. Analysts expect Tesla to deliver about 305,000 vehicles in the second quarter, up from 310,000 in the first quarter.

Tesla stock is also battered, falling 19% in April, partly because of the market – the Nasdaq was down 13% – and partly because investors assessed the impact of the company’s surprise purchase plan. CEO Elon Musk.


(TWTR) on its automaker. This may explain why Tesla stock rose 0.4% on Monday.

There is already a lot of bad news in the stock.

Write to Al Root at [email protected]

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