Chinese electric vehicle (EV) maker Nio (NYSE:NIO) delivered 15,815 vehicles in December 2022, reflecting an 11.5% growth compared to November and nearly a 51% year-over-year increase. Meanwhile, rival XPeng’s (NYSE:XPEV) December deliveries increased 94% to 11,292 units compared to November, indicating a strong rebound from the weakness seen last month. However, XPeng’s deliveries fell 29.4% year-over-year.
It’s worth noting that Li Auto’s December deliveries of 21,233 vehicles were higher than Nio and XPeng. Chinese EVs continue to be under pressure due to COVID-induced production and supply chain disruptions. Moreover, EV subsidies ended in China on December 31, 2022.
Last week, Nio lowered its Q4 deliveries outlook to reflect the impact of COVID-19 outbreaks in China on its supply chain. The company ended Q4 with 40,052 deliveries, reflecting a 60% growth over the prior-year quarter. Overall, Nio’s 2022 deliveries grew 34% to 122,486.
Meanwhile, XPeng’s Q4 deliveries touched 22,204, indicating a significant decline compared to 41,751 deliveries in Q4 2021. The company’s full-year deliveries grew 23% to 120,757.
Macro pressures, COVID-led disruptions, and fears of delisting pulled down Chinese EV stocks in 2022. Shares of Nio, XPeng, and Li Auto declined about 69%, 80%, and 37%, respectively, last year. Investors remain concerned about the impact of a potential economic downturn in China on the country’s EV makers.
Is Nio a Buy, Sell, or Hold?
Wall Street is cautiously optimistic about Nio due to near-term headwinds. Nonetheless, most analysts remain positive about the company’s new launches and continued growth in the EV market in China and beyond. At the Nio Day held in December 2022, the company launched its EC7 and ES8 models, with deliveries expected to begin in May and June 2023, respectively.
Wall Street’s Moderate Buy consensus rating for Nio stock is based on nine Buys and four Holds. The average NIO stock price prediction of $16.14 implies 65.5% upside potential.
What is the Target Price for XPEV Stock?
The COVID-19 restrictions in China severely hurt XPeng’s operations in 2022. The company’s losses widened in Q3 and its revenue missed expectations. The Street’s Moderate Buy consensus rating for XPeng stock is based on eight Buys, two Holds, and three Sells. The average XPEV stock price target of $13.16 suggests 32.4% upside potential from current levels.
