Shares of Chinese electric-vehicle startups Nio, Inc. (NYSE:NIO), XPeng, Inc. (NYSE:XPEV) and Li Auto, Inc. (NASDAQ:LI) are rallying in premarket trading on Tuesday, signaling a potential rebound from Monday's pullback.
The optimism came on the back of stellar deliveries these companies reported for September and the third quarter. Here's how each of them fared:
| Sept. Deliveries (units) | Y-o-Y | Q-o-Q | Q3 Deliveries (units) | Q3 Guidance (units) | |
| Nio | 21,181 | +35.4% | +4.98% | 61,855 | 61,000-63,000 |
| XPeng | 21,352 | +39% | +52.12% | 46,533 | 41,000-45,000 |
| Li Auto | 53,709 | +48.9% | +11.61% | 152,831 | 145,000-155,000 |
| BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) | 164,956* | +9.10% | +11.10% | 443,426 | N/A |
Most of these companies are now focusing on the low end of the market. XPeng said the first month deliveries of its XPeng Mona M03, an affordable electric sedan launched in late August, topped 10,000 units. Nio, which has so far focused on the premium end of the market has forayed into the mass market with its Onvo brand. Deliveries of the first vehicle launched by the sub-brand, codenamed L60, began in late September.
Given China's efforts to stimulate the domestic economy, the EV makers could see demand recovery, which bodes well for their fundamentals.
Incidentally, Tesla, Inc. (NASDAQ:TSLA) is scheduled to release its quarterly global deliveries report on Wednesday. Analysts, on average, expect the company to report sales of 465,000 units for the third quarter, with China primarily responsible for much of the upside.
According to Benzinga Pro data in premarket trading:
- Nio rose 4.49% to $6.98.
- XPeng rallied 3.69% to $12.63.
- Li Auto moved up 3.70% to $26.60.
- Tesla's Chinese Rival Nio Snags $1.9B Investment From Parent, Strategic Investors As It Forays Into Mass Market
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