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U.S.-listed Chinese electric vehicle makers Nio Inc (NYSE:NIO), Xpeng Inc (NYSE:XPEV), and Li Auto Inc’s (NASDAQ:LI) high valuation mirrors the companies' growth last year, analysts at CITIC Securities said, cnEVpost reported on Sunday.
What Happened: The analysts, led by Xu Yingbo, have priced in the high growth of Nio, Xpeng and Li Auto over the past year and continues to remain bullish for 2022.
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All the three electric automakers are expected to see a sales boost this year with the new “heavyweight product launches,” which could help exceed expectations, as per the analysts.
Nio’s upcoming mid-sized electric sedan, which would enter production later this year, could become the automaker’s best-selling product and help boost expansion overseas, Xu's team wrote.
See Also: Nio Says ET5, Launched Saturday, Is Already Its Model With Highest Pre-Orders
The Shanghai, China-based Nio revealed the ET5 last month at the company’s annual day. The fifth production model has since reportedly become its most pre-ordered model.
Deliveries for the ET5, which would compete with Tesla Inc’s (NASDAQ:TSLA) Model 3, are scheduled to begin in September. The ET5 comes at a starting price of $51,500 before government subsidies while the Model 3 is priced at $40,905 onwards, after subsidies.
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Nio, Xpeng and Li Auto delivered 91,429, 98155 and 90,491 electric vehicles in 2021.
Why It Matters: Shares of the three electric vehicle companies have been under pressure recently amid China's growing scrutiny on tech companies including DiDi Global Inc's (NYSE:DIDI) plans to delist from the New York Stock Exchange.
Further, China’s plan to cut subsidies on new energy vehicles by 30% this year has added to the woes.
China had earlier said NEV subsidies are expected to decline each year by 10%, 20% and 30%, from 2020 to 2022.
Price Action: Nio shares closed 0.15% lower at $29.3 a share on Friday. The stock is down 12.5% so far in 2022.
Xpeng shares closed 3.8% lower at $45 a share and the stock is down 10.4% year-to-date.
Li Auto shares closed 2.8% higher on Friday. The stock is down 9.8% year-to-date.
Photo: Courtesy of Nio
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.