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EV Roundup: TSLA's Q2 Deliveries, VWAGY's ID. Aero Concept & More

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Second-quarter 2022 delivery updates from electric vehicle (EV) king, Tesla TSLA, as well as China-based EV players, including NIO Inc. NIO, Li Auto LI and XPeng XPEV took center stage last week. Tesla reported weak second-quarter deliveries, putting an end to the string of record quarterly deliveries. Parts shortages and pandemic-related production shutdowns at Tesla’s plant in Shanghai caused a big drop in the electric car maker’s global vehicle deliveries. Among the China EV majors, XPEV recorded the highest number of deliveries. Finally, Germany-based auto biggie Volkswagen VWAGY made it to the headlines as it divested a minority stake in Electrify America and also unveiled the ID. Aero concept.

Tesla, Li Auto, XPeng, Volkswagen and NIO carry a Zacks Rank 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recap of Last Week’s Important Stories

1. Tesla released its second-quarter 2022 production and deliveries update. It produced more than 258,000 vehicles (comprising 16,411 Model S/X units and 242,169 Model 3/Y units). Notably, June was the month of the highest vehicle production in Tesla’s history. Second-quarter deliveries totaled 254,695 units (consisting of 16,162 Model S/X units and 238,533 Model 3/Y units), which snapped a two-year streak of quarter-on-quarter gains.

A resurgence in COVID-19 cases in China had forced Tesla to temporarily shut down its largest factory in Shanghai. However, the company is set to ramp up production at the Shanghai factory which will help boost deliveries in the second half. While second-quarter 2022 deliveries reduced from 310,048 deliveries in the first quarter, they recorded year-over-year growth of 26.5%.

2. NIO announced that it delivered 12,961 vehicles in June 2022, marking an increase of 60.3% year over year. The deliveries consisted of 1,684 ES8s, 5,100 ES6s, 1,828 EC6s, and 4,349 ET7s. In the second quarter of 2022, 25,059 vehicles were delivered, which increased 14.4% year over year. Cumulative deliveries of 217,897 vehicles were recorded as of Jun 30, 2022.

In June, NIO launched the ES7, a new mid-large five-seater, smart-electric SUV. The vehicle is the first SUV to be based on NIO Technology 2.0 (NT2.0), the latest technology platform of the company. NIO also introduced the 2022 ES8, ES6 and EC6, containing the upgraded digital cockpit domain controller and sensing suite, which enhance the computing and perception capacity as well as the digital experience of the vehicles. Deliveries of the four models are expected to begin in August 2022.

3. XPeng recorded monthly deliveries of 15,295 Smart EVs in June, up 133% year over year. Deliveries covered 8,045 P7s, 5,598 P5 smart family sedans and 1,652 G3i and G3 smart compact SUVs. It delivered 34,422 Smart EVs in total in the second quarter, topping the list of emerging auto brands in China for the fourth consecutive quarter. As of Jun 30, 2022, year-to-date total deliveries were 68,983 units, a whopping 124% increase year over year.

From mid-May, XPeng increased deliveries by resuming double-shift production at its Zhaoqing plant. Last month, XPEV reached the milestone of 200,000 cumulative deliveries. XPEV intends to start accepting pre-orders for its new flagship G9 SUV in August, followed by an official launch in September. It also plans to release its new City Navigation Guided Pilot after receiving relevant approvals.

4. Li Auto saw deliveries of 13,024 Li ONEs in June 2022, up 68.9% year over year. With this, the company’s second-quarter deliveries were 28,687, representing a 63.2% year-over-year increase. The cumulative deliveries of Li ONE totaled 184,491 since the vehicle made its debut in 2019.

Li Auto also officially unveiled Li L9, the flagship smart SUV for families, in June. The vehicle is a six-seat, full-size flagship SUV, offering ample space and comfort for family users. It also boasts the company’s self-developed autonomous driving system, Li AD Max, and premium vehicle safety measures to protect every family passenger. The vehicle has a retail price of RMB459,800. Since its launch, it has received more than 30,000 orders, each with a basic refundable deposit of RMB5,000. Deliveries will be initiated by the end of August.

5. Volkswagen announced that it sold a minority stake in its EV charging business, Electrify America, to Siemens. The deal would bring the valuation of the charging network to more than $2 billion.Volkswagen and Siemens would jointly invest $450 million to double the number of Electrify America’s charging stations across the United States and Canada by 2026. The deal is synchronous with Siemens’s existing operations in the EV charging sector. The company recently said that it plans to expand its manufacturing operations in the United States as part of a plan to manufacture more than 1 million EV chargers in the country over the next four years.

In another development, Volkswagen revealed the ID. Aero – a concept related to its future electric sedans – will go into production worldwide in early 2023. As Volkswagen’s global ID. family of EVs continues to expand with growth more than doubling in 2021, the auto giant is set for a momentous run.The vehicles form part of Volkswagen’s ACCELERATE strategy to bolster EV adoption and aim for net-zero emissions and be climate-neutral across the entire company chain by 2050. The strategy also targets to include a new BEV model each year through 2026.

Price Performance

The following table shows the price movement of some of the major EV players over the last week and six-month period.

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What’s Next in the Space?

Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.

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NIO Inc. (NIO) : Free Stock Analysis Report
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XPeng Inc. Sponsored ADR (XPEV) : Free Stock Analysis Report
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