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Nio’s strong Q2 sales, Xpeng raises $1.8 billion, ViacomCBS C-suite changes

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Brian Sozzi and Myles Udland break down Thursday’s early market movers, which include: Nio Inc. reporting strong second-quarter deliveries, Xpeng raising $1.8 billion in its Hong Kong listing, and ViacomCBS gaining a boost in shares as the company makes an international push.

Video Transcript

MYLES UDLAND: Let's talk about some stocks on the move today. And let's talk first about the electric vehicle space. Sozz, a couple of names you always keep your eye on-- Nio, Xpeng-- they're on the move after reporting their sales data for June. And we continue to see huge growth for these businesses over last year. Of course, the absolute number of vehicles they're selling is still small, but the market right now certainly not too worried about today's sales, much more worried about that number on the right hand part of this graphic, the year over year growth rate, which investors, of course, hope will accelerate.

BRIAN SOZZI: Well, Myles, I just realized here in real time, I've never driven any of these cars from Nio or Xpeng because they're not available here, but we cover it so closely, because these are some of the hottest tickers on the Yahoo Finance platform. And today really is no different.

And Nio is out with its June sales. Deliveries up 116% in the second quarter. Deliveries were up 100 and-- about 112%. Xpeng deliveries-- get this, Myles, and you had a great tweet on this, this morning here-- Xpeng deliveries up 617% year over the year. Second quarter, up 439%.

And you're looking at a market cap for Xpeng, as you mentioned, Myles, about, what, $36 billion. It's just absolutely amazing, the valuations on these Chinese electric vehicle companies, given they are still in the upstart phase, and they're not making any money yet.

Also, too, you were just talking about Tesla here. Look at the moves over the past three months in some of these stocks. Li Auto, another China EV maker, shares up 37%. Nio up 37%. Xpeng up 21% over the past three months. Guess what, Myles? Tesla shares only up 2%. So Tesla's lagging here.

MYLES UDLAND: Yeah, Tesla has been a little bit of a lagger there in the broad market. Interesting that that comes at a time when its actual business of how many cars it's actually selling continues to mature into a more profitable stage. But yeah, I mean, Chinese automakers have always been-- you know, the China market has always been the-- you remember Cadillac going in there, what, maybe 28, 20 years ago or so, is a real growth driver for it.

I think we had a great discussion-- it might have been this week-- it might have been last week-- it all kind of blends together-- about the different dynamics in terms of what investors are betting on and the competitive dynamics in these markets, given the force with which the Chinese government can incentivize electric vehicle purchases in a way the US government cannot. Quite, though, as you see those overall numbers, still, again, quite low in the most recent month. And a couple of meme names as well, and you see these stocks are off their highs from the January, February rally that we saw in those names.

Another name that we're keeping our eye on this morning, Viacom CBS. Some leadership changes there, Sozzi, that you flagged for us, as that company continues-- I mean, another name that got caught up in another meme trade of sorts, the Archegos blow-up. But let's set that aside and talk about the core business here for Viacom. Big splashy rollout of its Paramount Plus streaming service during the Super Bowl. CBS had the Super Bowl this most recent year. And now the company shaping up to remake their C suite.

BRIAN SOZZI: Yeah, it's-- I'm still-- I'll hit the top level points here. You have executives Chris McCarthy and Brian Robbins are each-- they've been promoted to the president and CEO roles, respectively, of the US and the international business. They will continue to report to Viacom CBS CEO Bob Bakish.

I think what you essentially have here is a succession race now playing out of Viacom CBS. Bob Bakish has been leading the company for some time. He led this integration here. And perhaps he's thinking about his next steps in his own career. So I wouldn't be surprised if this is just a company trying to position for its next chapter of growth.

MYLES UDLAND: And we've seen the transition of power. We saw it last year with over at Disney. And there is certainly a changing of the guard in the media space. But those things, as you mentioned, Sozzi, they take some time. And everyone likes a good horserace, right? The day that I get promoted to the co something, along with someone else, reporting into a single person, is the day that I will have identified my main rival and need to formulate a plan to outwit them to get the top spot.

BRIAN SOZZI: Myles, you're there-- you are already the chief newsletter writer here at Yahoo Finance. You just-- you keep being you. You just be you.

MYLES UDLAND: You know, it's funny. As I was saying that, I realized there's three of us that do the show when Julie is here. They should really find a way to sort of create, like, a, you know-- like, a death match with the three of us so that only two survive, something like that. What would be the promotional way to say--

BRIAN SOZZI: I ain't commenting on that. We can go to break.

MYLES UDLAND: --these two are the chief something and the co something else. And we'll see, you know, who can survive the next quarter of interviews and discussions and who are the three that get to move on, like "Legends of the Hidden Temple" or something, but for internet television business people. Just an idea.

BRIAN SOZZI: I'm going to hop off. I'm going to go--

MYLES UDLAND: Just a thought.

BRIAN SOZZI: --put my makeup on.

MYLES UDLAND: Just a thought. Add a little spice into the show. All right.