The shares of Chinese electric car makers Nio and Li Auto recorded gains during yesterday’s trading after the two companies published a jump in their vehicle deliveries for the month of July. However, this is lower than the June deliveries, which amounted to nearly 13,000 vehicles. As for Li Auto, it recorded the delivery of 10,422 Li ONE sports model vehicles during July, achieving a growth of 21.3% on an annual basis, but it was also less than the volume of deliveries in June.
At the same time, giant competition Xpeng’s connections were the biggest among the three companies. The Guangzhou-based Chinese company said connections grew 40% year-on-year to 11,524 vehicles, but it couldn’t outpace June’s performance either, and following the news from the three companies, New shares jumped 2.3%, Li Auto shares 3.8% and Xpeng rose 0.2%. Read more [Xpeng’s Loss Shrinks During The Fourth Quarter].
The business of the three companies was greatly affected this year in light of the increase in the number of infections with the Covid-19 virus in China, which led to a quarantine and general closure in major cities and industrial centers in the second largest economy in the world, automakers continue to suffer from supply chain problems, parts shortages and high material prices. Read more [Chinese Company Nio Halts Production Due to New Mutant].
Nio said it has been working hard with its supply chain partners to improve performance, and now expects its vehicle production to accelerate in the coming months of the third quarter, while Xpeng and Li Auto did not say anything about supply issues. Read more [Li Auto is Offering $2 Billion of Shares For Sale].