Xpeng is a leading Chinese smart electric vehicle company that designs, develops, manufactures, and markets Smart EVs that appeal to the large and growing base of technology-savvy middle-class consumers in China. Its mission is to drive Smart EV transformation with technology and data, shaping the mobility experience of the future. In order to optimize its customers’ mobility experience, Xpeng develops in-house its full-stack autonomous driving technology and in-car intelligent operating system, as well as core vehicle systems including powertrain and the electrification/electronic architecture. Xpeng is headquartered in Guangzhou, China, with offices in Beijing, Shanghai, Silicon Valley and San Diego. The Company’s Smart EVs are manufactured at plants in Zhaoqing and Zhengzhou, located in Guangdong and Henan provinces, respectively. For more information, please visit https://en.xiaopeng.com
Well, what a surprise… already this year! What will the Volvo people say to that? The Swedes are very anti-Chinese, after all. To my knowledge, Nio or Li Auto do not yet have sales in Europe. In Norway, a hundred or so Xpengs have already been sold. The market in Europe is small compared to China, but growth companies don’t think like that. This EV trio certainly fights for every corner (Xpeng, Li Auto, and Nio). In China, by the way, there’s a funny way to sell Xpeng P7… at sales points, there’s a Tesla car, and then the salesperson tells you everything that’s missing from the Tesla compared to the P7. And there are also signs in the Tesla stating the same. https://alltomelbil.se/xpeng-bekraftar-elbilarna-g3-och-p7-kommer-till-sverige-under-2021/
Here’s a readable article with a comparison of China’s EV troika and other interesting information.
A reputable (?) Forbes article is behind it.
Although the article is dated 25.01.2021, I believe that the “facts” are not entirely accurate, and I get the impression that the article might have been partially copied from an older one.
NIO vs XPENG Production (and presumably sales too)
I calculated how much production has grown in recent months. I didn’t include Li Auto because I think it’s still in its own category (hybrid car). The trio narrowed down to a duo. Month/Year pcs, % increase from November. NIO
11/2020 5291
12/2020 7007 +32%
01/2021 7225 +3%
total +36.5% increase from November.
XPENG 11/2020 4224 12/2020 5700 +34% 01/2021 6015 +5.5% Total +42.5% increase from November.
Xpeng seems to be competing very well against the older and larger Nio, at least in terms of unit numbers and growth.
Especially the growth figures from November to February (Nio 36.5%, Xpeng 42.5%) are noteworthy.
Chinese people don’t buy many cars in January and February (I saw statistics somewhere).
On the other hand, there are supposedly waiting times for new EV cars (Nio and Xpeng) to be delivered to customers, so the reason for the rather small increase in unit numbers in January must be something else. What? Chinese New Year is coming, and everyone knows how much effort goes into that. So?
Great numbers from both manufacturers, and the market probably has enough room
I wouldn’t really compare or take it as a measure of which manufacturer happens to make more cars. As we know, Xpeng is a car for the so-called ordinary, well, perhaps middle-income person, while NIO is a premium-class car, whose competitors are Tesla and German premium brands.
Thus, even with (possibly) smaller sales volumes, it’s possible to make more profit due to higher margins. We look forward to the release of Q1 results. This is not against Xpeng in any way, but merely an observation that sales numbers alone do not directly tell us anything.
Given that Chinese EV companies have been doing poorly recently (in the stock market - this added afterwards), here’s some reading on the upcoming year for Xpeng, Nio, and Li, for example. One of many “analyses.”
Tesla is predicted to have difficult times; Today, it was announced that 135,000 US-Teslas are being recalled, but the stock rises 4%.
Why do you think Chinese EV companies have been doing poorly, when sales growth, at least, has been so tremendous? Do you know something that sales figures don’t tell? I’m not trying to provoke or anything, but I’m just wondering about that comment?
Raw text, but perhaps reactions to recent events:
“Competition increased in January with Tesla announcing its China-made Model Y would soon begin deliveries at a price close to SUVs from Nio and Li Auto” - 02.02.2021
Fortunately, Xpeng’s SUV has been put into production at a lower price, so Tesla can’t yet (?) reach it. On the other hand, the P7 is presumably Xpeng’s more profitable model.
On the Nio/Xpeng front, the overall picture shows perhaps a hot late autumn that will be calmed down a bit longer before a new awakening. So, are the restraining factors perhaps more external than due to the companies’ development?
At the moment, I agree that the news about price competition might have had an impact. But in reality, it might contain a future positive “surprise.” Even though this is the Xpev thread, at least Nio’s William has assured that they are not competing with Tesla on price but on quality. And this was also evident in the ET7 pricing, which was rather on the high side. Of course, success requires that the valuation remains sufficient in the future; at the moment, it seems everything that comes out is sold.
That had gone past me. Otherwise, it’s still amazing how the courses are moving in lockstep.
Regarding the general trend, it now seems to be a phase where news from Chinese EV companies doesn’t directly reflect in the stock price. This could be due to something else in the background, such as continued caution from delisting echoes, anticipation of Biden’s openings on the matter, etc. Even if the companies in question are not directly targeted. However, JP Morgan’s etc. targets indicate that when the weather changes again, the pace might continue, either uphill or downhill! For Nio, a confirmed plan for a Nio center in Norway (my own guess) and the opening of the European conquest could very well open some floodgates…
Here are the sales figures for all cars (including EVs)
As you can see, the autumn months are good sales seasons, and the early months from February onwards are weaker.
February is particularly bad (Chinese New Year)
So… keep cool if sales in next month’s sales report are weak for Xpeng and also Nio.
Xpeng had to recall a rather huge number of G3 models sold before September 2020 (electrical issue). This is reportedly scheduled for February.
Here’s a good article for Xpeng, Nio, and Li shareholders, especially if bought as Long.
A Chinese newspaper (Hong Kong).
At the same time: Xpeng’s sales points in Norway have increased enormously. Many “old” car companies have now invested in Xpeng. Sweden is next. It’s not worth bringing them to Finland yet, as there are still only a few distribution points. Wasn’t Finland supposed to be a pioneer :- )
Behind a paywall (Barrons.com article), but this news will probably drop the stock price even further after this bloody day. I should probably put on my buying and buy the first shares.
“that 180-day period already expired on February 22nd, so most people who wanted to sell have already sold. But yeah, a few might still sell if it’s about larger lots.”
and buy the first shares.