|Bid||0.00 x 1000|
|Ask||0.00 x 800|
|Day's Range||33.00 - 35.82|
|52 Week Range||17.11 - 74.49|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Chinese electric vehicle maker Xpeng Inc – ADR (NYSE: XPEV) will likely launch a new version of its P7 sedan as soon as next week. What Happened: Xpeng's new P7 with lithium iron phosphate battery will be released on March 3, according to a report in a China-based media outlet that quoted company insiders. P7 is Xpeng's super-long-range smart sedan and has a post-subsidy base price of 229,900 yuan (roughly $35,500). This new version will have a range of 480 kilometers, the report said, while the current version has a maximum NEDC range of 706 kilometers. Why It Matters: Most EV makers are now shifting to lithium iron phosphate, or LFP, batteries given the supply constraints plaguing the widely-used nickel. LFPs are cheaper but usually result in lower range. Tesla Inc (NASDAQ: TSLA) uses LFP batteries for its Model 3 cars manufactured at its Giga Shanghai factory. Xpeng focuses on the low- to mid-end of the market. A move toward LFP batteries is likely to improve the price competitiveness of its cars. A Xpeng spokesperson declined to comment on the report when contacted by Benzinga. Price Action: Xpeng shares closed the week down 14% at $34.11. Photo courtesy Xpeng. See more from BenzingaClick here for options trades from BenzingaChinese EV Maker Li Clocks Q4 Profit On Strong Vehicle Sales, Issues Upbeat Q1 GuidanceEV Stock Slide: Why Nio, Xpeng, Li Auto Shares Are Lower Tuesday© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Electric car companies' dash for cash will continue through the Year of the Ox as the capital-intensive industry ploughs billions of dollars into new models and builds infrastructure across the world's largest car market, China. The single largest investment by the car industry in a century is well under way as electric vehicle (EV) start-ups ramp up production and traditional carmakers, such as BYD and Geely, switch to making EVs from fossil-fuelled internal combustion engines. All of them need well-oiled fundraising machines to source capital for developing cars with longer driving ranges per charge while maintaining spotless safety records. Companies will also have to spend heavily on rolling out charging stations and marketing their models to China's 1.4 billion consumers. Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China. 2020 was a golden opportunity for EV companies to fill their coffers as their share prices surged. We calculate which company was most nimble in reacting to the sector's changing fortunes since January 2020 by capitalising most on investors' desire to participate in the industry's growth. To be sure, companies can tap into a wide variety of the sources of capital, including internal resources, government funds as well as external investors. Start-ups are competing against state-owned behemoths that do not need to tap capital markets. Governments are lending their support to the EV industry in the form of subsidies in a bid to cut pollution from exhaust pipes. Beijing wants one in every five new cars hitting the country's roads to be either purely electric, hybrid or fuel-cell powered by 2025, which could amount to 4 million units. EV makers such as WM Motor and Xpeng have won backing from government and state-owned enterprises to expand production. Funding the switch to EVs has only just begun, cautioned analysts. Complete electrification of the industry would cost over US$2.5 trillion of investment, said Bank of America stock analysts in a research report. The next gear up, fully autonomous vehicles, would entail further investment. The window of opportunity since January 2020 has given the more established players in the sector the chance to put more road between themselves and new entrants who have not yet listed such as Leapmotor and Aiways. It helps them retain talent, build factories and install manufacturing equipment. Public markets investors leapt on the bandwagon as they looked to upgrade their portfolios in terms of environmental, social, and corporate governance (ESG) factors. Tesla's stock is nearly nine times higher than where it was trading at the start of 2020. Given the current market exuberance, leading players could arguably raise more capital than they could productively use given the exuberance in markets. With that in mind, we also examine the major EV players' long-term capital-raising records based on data from Refinitiv, Bloomberg and company sources as well as their key use of proceeds. Li Auto made its debut on Nasdaq last year. Photo: Sina alt=Li Auto made its debut on Nasdaq last year. Photo: Sina NO 5: LI AUTO 2020 to date: US$2.46 billion Total funds raised: US$3.16 billion First in our line up of the most prolific capital raisers over the past 14 months we have Li Auto, which is backed by mainland online services delivery giant Meituan Dianping. The Chinese electric vehicle maker raised US$1.0925 billion on Nasdaq in July during its initial public offering (IPO) and quickly followed up with a US$1.363 billion share sale in December. Li Auto, founded by serial entrepreneur Xiang Li, is the first company in China to commercialise what is known as extended-range technology for EVs, which helps solve the problem of a lack of charging infrastructure in China and limited battery power. If the car's battery runs down then a combustion engine kicks in. Through Series A to C fundraising rounds, Li Auto raised US$676 million, according to Crunchbase. Just ahead of its IPO, Chinese car showroom platform Cango chipped in US$30 million. Li Auto has no debt outstanding, according to Refinitiv and Bloomberg databases. Tesla CEO Elon Musk. Photo: AP alt=Tesla CEO Elon Musk. Photo: AP NO 4: TESLA 2020 to date: US$3.1 billion Total funds raised: US$20 billion Founded in 2003, Tesla is a fundraising machine, having tapped external investors for roughly US$20 billion, according to publicly available records. The Palo Alto-based company made its Nasdaq debut on June 29, 2010, raising US$260 million. Now the world's most valuable carmaker, Tesla was trading at US$816 a share as of mid February, 48 times its IPO price of $17 a share. Propelled by the surge in Tesla's share price, CEO and early investor Elon Musk, is now one of the world's richest men. Tesla began construction of its Gigafactory in Shanghai, its first factory outside the US, in January 2019 and its swish models have become a smash hit in the Middle Kingdom. Its Model 3 was the bestselling EV in China last year, beating state-owned SIAC Motor's Wuling HongGuang Mini EV into second place. In 2020, Tesla generated 21 per cent of its sales from China, its second-largest market after the US. On January 1, Tesla launched its second Shanghai-made EV - Model Y, which is likely to boost sales this year. Tesla's grand total of funds raised breaks down into US$13.45 billion from 13 share sales and US$5.4 billion from eight bond issues, according to Refinitiv. Before its IPO, Tesla raised around US$790.5 million in debt and equity from private markets investors. Former MUFG banker, John Lin, is a member of Tesla's global capital markets team, according to LinkedIn. BYD's electric car, the Han. Photo: Simon Song alt=BYD's electric car, the Han. Photo: Simon Song NO 3: BYD 2020 to date: US$4 billion Total funds raised: US$11.3 billion Unlike Tesla, and the Chinese NEVs, BYD was an established fossil-fuel vehicle company before switching to electric power. The Shenzhen-headquartered carmaker, backed by billionaire Warren Buffett, started production of EVs back in 2002 and by December, it was selling more EVs than traditional cars. Also in 2002, BYD listed in Hong Kong and then in Shenzhen in 2011. China's largest carmaker by market value raised HK$29.8 billion (US$3.8 billion) from the sale of new shares in January, the first time it has tapped public markets since 2016, according to Refinitiv. It also waded into debt markets raising US$282.8 million last year. Founded in 1995, BYD said it sold the stocks to accelerate its replacement of vehicles powered by petrol or diesel with new energy vehicles and smart cars. BYD is the world's third-largest carmaker by market value, behind only Tesla and Toyota and makes EV models under the bands of Qin, Song, Han and Tang. It is also the world's biggest manufacturer of electric buses. The company started as a manufacturer of rechargeable batteries. In total it has raised US$7.9 billion from equities investors and US$3.4 billion from debt markets, according to Refinitiv data. Xpeng factory in Zhaoqing, Guangdong province. Photo: Iris Ouyang alt=Xpeng factory in Zhaoqing, Guangdong province. Photo: Iris Ouyang NO 2: XPENG 2020 to date: US$5.1 billion Total funds raised: US$7.7 billion Xpeng has overtaken BYD to slide into second place in our rankings of EV makers' ability to capitalise on investors' fascination with the budding industry. The Guangzhou company has raised a grand total of US$5.1 billion since the start of 2020 and its American depositary shares have jumped to US$43.41 as of mid February, nearly triple its IPO price of US$15 each. The smart EV maker raised US$1.72 billion from its debut on the New York Stock Exchange in August. Founded in 2014 and led by He Xiaopeng, the eponymous carmaker quickly tapped investors with a follow-on share placement of up to US$2.484 billion in December. The company is ploughing the funds into research and development, with its third model slated for official launch and delivery this year. It delivered 27,041 vehicles last year. While not counting towards its capital markets score, we note that Xpeng won government support in September to the tune of 4 billion yuan (US$620 million) to build its second EV factory. It also arranged 12.8 billion yuan billion worth of credit facilities from Chinese state-owned banks in January which it has not completely drawn down but has on hand for a rainy day and to smooth out its cash flows. Xpeng completed its Series C+ round of fundraising in August, collecting a total of US$900 million from investors including Alibaba Group Holding, the owner of the Post, Qatar Investment Authority and Xiaomi. From Series A through C fundraising rounds between 2016 and 2019 it accumulated roughly US$2.64 billion, according to Crunchbase. Xpeng has no bonds outstanding according to Refinitiv and Bloomberg databases. Xpeng hired Brian Gu from US bank JP Morgan in 2018 to front its fundraising efforts. William Li, founder and CEO of Chinese electric vehicle maker NIO, unveils NIO's ET7 sedan on January 9. Photo: Reuters alt=William Li, founder and CEO of Chinese electric vehicle maker NIO, unveils NIO's ET7 sedan on January 9. Photo: Reuters NO 1: NIO 2020 to date: US$6.11 billion Total funds raised: US$9.6 billion NIO has had a roller-coaster ride over the past year, moving from the edge of bankruptcy in April to become the world's fifth-largest carmaker by market value. The Shanghai-based EV start-up raised US$1.1518 billion in 2018 from its IPO in the United States, the home turf of Tesla. Its ADS were trading at US$57.32 as of mid-February, over nine times its US$6.26 IPO price. Since listing, NIO has raised a mixture of equity, bonds and loans, creating one of the more diversified capital structures among Chinese-headquartered EVs. NIO named Jade Wei as its capital markets point person in 2018, according to LinkedIn. Last year, NIO's investor relations team was on fire, tapping equities investors at least three times to raise US$4.8 billion, according to Refinitiv. Most recently NIO, founded in 2014 by William Li Bin, sold US$1.5 billion worth of convertible notes in January, double the size of its 2019 US$750 million offering. It also placed US$200 million of convertible notes privately in 2020. Before its IPO, NIO collected US$1.409 billion from Series A through D fundraising rounds, according to Crunchbase. Pre-IPO investors included internet behemoth Tencent Holdings and Edinburgh-based investment manager Baillie Gifford. Additional reporting by Daniel Ren This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2021 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2021. South China Morning Post Publishers Ltd. All rights reserved.
In the last few days, electric vehicle stocks have witnessed some sharp correction. I am not surprised given the fact that EV stocks went ballistic during the last year. There is also no reason to panic with various estimates pointing to an inflection point in the EV industry. I see the correction as a good opportunity to accumulate some quality stocks. Stock-price action aside, the electric vehicle industry is in top-gear. To put things into perspective, by fiscal year 2022, there will be 500 different EV models available globally. This implies intense competition. However, the number of passenger electric vehicles (on-road) is expected to increase at a CAGR of 31.4% in the next decade. This growth will allow multiple players to survive and create shareholder value.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 8 Stocks to Buy for March Let’s discuss seven electric vehicle stocks that have an exciting product line-up for the year: Tesla (NASDAQ:TSLA) XPeng (NYSE:XPEV) CIIG Merger (NASDAQ:CIIC) Churchill Capital (NYSE:CCIV) Niu Technologies (NASDAQ:NIU) Electrameccanica Vehicles (NASDAQ:SOLO) NextGen Acquisition (NASDAQ:NGAC) Electric Vehicle Stocks: Tesla (TSLA) Source: Grisha Bruev / Shutterstock.com Any discussion on electric vehicles stocks is incomplete without TSLA stock. After peaking at about $900, TSLA stock recently declined below $700. The correction seems like a good opportunity to accumulate the stock. Tesla has an exciting product line for the next two years. This is likely to ensure that the company’s sales volumes continue to keep the markets happy. Tesla Cybertruck is likely to hit the markets toward the end of the year. Elon Musk believes that the company will be “able to do a few deliveries toward the end of this year.” However, volume production is likely in the coming year. With more than 500,000 pre-orders, the markets will be looking forward to see the final version of Cybertruck. Further, Tesla has already started taking pre-bookings for Tesla Model S Plaid. With deliveries starting toward the end of the year, the premium model boasts of three electric motors and has more than 1,100 horsepower. Of course, Tesla Roadster is in the pipeline along with Tesla Semi. These models are likely for delivery in FY2022 or FY2023. With Tesla Semi, the company will make its first move in the commercial EV segment. Overall, Tesla has a promising line-up and TSLA stock looks attractive after the recent correction. The EV industry is positioned for a multi-decade growth and Tesla is well positioned to benefit. XPeng (XPEV) Source: Andy Feng / Shutterstock.com XPEV stock has been sideways to lower in the last two months. With strong growth likely through the year, the stock is attractive at recent levels around $35. For Q3 2020, the company reported vehicle deliveries of 8,578, which was higher by 265.8% on a year-on-year basis. Further, for Q4 2020, the company guided for more than 10,000 vehicle deliveries. Strong growth is a key factor to be bullish on XPEV stock. Specific to new vehicle development, I see the following growth triggers. First, the company selected Livox, which is a leading manufacturer of lidar equipment. Xpeng will be the first EV company to deploy “automotive-grade lidar technology” in the current year of production. Second, the company’s third model is slated for launch this year with mass production toward the end of the year. The launch of this sedan model is another growth trigger for the company. It’s worth noting that the G3 and P7 have already been delivering robust sales numbers. In addition, XPeng launched the G3 smart electric SUV in Norway. The current year is likely to be a year for further expansion in Europe. 8 Stocks to Buy for March XPeng is scheduled to report Q4 2020 results on March 8. It’s very likely that the company’s numbers will exceed analyst estimates. That’s another potential trigger for renewed rally. CIIG Merger (CIIC) Source: NESPIX / Shutterstock.com In November 2020, CIIG Merger announced a business combination plan with Arrival. The latter is in the manufacturing of commercial electric vehicles and has ambitious plans for the next few years. I believe that CIIC stock is among the top electric vehicle stocks to consider for the year. Arrival is planning to commence electric bus production in the fourth quarter of 2021. The company is in advanced discussions for orders and deliveries are likely toward the end of the year. Furthermore, Arrival expects to begin production of electric vans and large electric vans in FY2022. For this, the company already has an initial order of 10,000 vans from United Parcel Service (NYSE:UPS). Therefore, starting with the current year, the company has a good product pipeline. It’s important to note that the SPAC business combination ensures that the company has $660 million in gross cash proceeds. One differentiating factor for Arrival is micro-factories. These factories require a lower capital expenditure and can be constructed in six months. In the next two years, the company plans for micro-factories in the U.S. and European Union. Hyundai (OTCMKTS:HYMTF) and Kia Motors are among the investors in the company. The strategic investment and partnership will enable joint development of vehicles using Arrival’s platform. The partnership underscores the company’s credibility and can be a long-term growth catalyst. Overall, CIIC stock has been in a range of consolidation below $30. With the business combination likely to close toward the end of Q1 2021, CIIC stock is worth considering. Electric Vehicle Stocks: Churchill Capital (CCIV) Source: Pasuwan/ShutterStock.com As I write, CCIV stock is lower by 33% in pre-market. The sharp correction comes after Lucid Motors confirmed the business combination plan with Churchill Capital. I did warn in one of my recent articles that CCIV stock will “sell-off” on news. However, I would keep the stock on the radar to accumulate on dips. Lucid Motors has some big plans for the year. In December 2020, the company completed construction of its first factory with an initial production capacity of 30,000 vehicles. With phased expansion, capacity is likely to ramp up to 40,000 vehicles. The company intends to begin production and deliveries of Lucid Air Dream Editions in Spring. Lucid Air Pure will be up for production in FY2022. In anticipation of the launch, Lucid Motors is also establishing 20 Lucid Studios through the United States. The initial model will be showcased to consumers through these studios. Lucid Motors has guided for revenue of $2.2 billion for FY2022. The company says revenue is likely to surge to $22 billion by FY2026. Besides Lucid Air, the company’s top-line growth is likely to be fueled by new models in FY2023 and FY2025. 8 Stocks to Buy for March With ambitious growth plans, CCIV stock is attractive for the long term. Niu Technologies (NIU) Source: Shutterstock Among electric vehicle stocks, NIU stock has been relatively unnoticed. The stock has, however, moved higher by 355% in the last year. Niu Technologies is a provider of smart electric two-wheeled vehicles. For FY2020, the company sold 600,892 e-scooters, which was higher by 42.6% year-over-year. With sales in 46 countries, the company is positioned for sustained growth. Entry to new markets will continue to trigger growth. As an example, Niu Technologies is eying entry to India, which has a big addressable and under-penetrated EV market. Further, the company has new products set for the year. One of the products is the RQi electric motorcycle. According to the company, “RQi can achieve a top speed of 160 km/h and can return up to 130 km of range in a single charge.” Additionally, TQi, which is a self-balancing three-wheeler, will be launched in the second half of the year. EUB-01, an electric bicycle, is another product likely to be launched in FY2021. Therefore, with an exciting product pipeline, Niu Technologies is positioned for sales volume and top-line growth. I would expect NIU stock to continue trending higher after some consolidation. Electrameccanica Vehicles (SOLO) Source: Luis War / Shutterstock.com SOLO stock, which recently was trading around $6, is another interesting name among electric vehicle stocks. The stock trades at a market capitalization of just $568 million. Electrameccanica is manufacturing a single-seat electric vehicle called SOLO. The soft launch of SOLO is underway in the United States. As of February 2020, the company had 20 retail locations for marketing and sale of the Solo EV. In the coming years, the company plans expansion outside the United States. An attractive factor about Solo EV is the pricing. With a true cost of ownership of $20,283, the electric vehicle is likely to attract attention from consumers. I also like the fact that Electrameccanica is pursuing an asset-light model. For manufacturing, the company has a strategic partnership with Zongshen Industrial Group. 8 Stocks to Buy for March Depending on the demand for the company’s EV, a manufacturing or assembling facility is likely in the coming years. Overall, SOLO stock is attractive after a sharp correction. The EV industry has multi-year tailwinds and the company has a differentiating factor. Electric Vehicle Stocks: NextGen Acquisition (NGAC) Source: Shutterstock In another recent business combination, truck maker Xos will go public through a $2 billion SPAC deal with NextGen Acquisition. NGAC stock surged higher on this news. As an overview, Xos is another player in the commercial EV segment. The company’s full suite of Class 5 to Class 8 electric vehicles are expected to be launched in the current year and FY2022. The company expects to deliver 116 EVs in the year. The delivery of EVs is likely to increase to 33,674 by FY2025. It’s worth noting that Xos has an order backlog of 6,000 commercial EVs. This includes orders from clients United Parcel Service, Loomis, UniFirst and others. I expect the order backlog to swell as companies shift toward electric vehicles. Similar to Arrival, the company is also working on flex manufacturing, which involves a $45 million capital expenditure per facility. These facilities can be constructed in a year. Once these factories operate at full utilization, EBITDA margin can be robust. With the deal just being announced, the business combination is at least two quarters away. However, NGAC stock will be attractive for exposure on correction. In addition, if the company announces further additions to the order backlog, the stock can move higher. On the date of publication, Faisal Humayun was long XPeng. Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modelling. Faisal has authored more than 1,500 stock specific articles with focus on the technology, energy and commodities sector. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next Potential Winner It doesn’t matter if you have $500 in savings or $5 million. 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