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Tag: Xpeng Inc

  • Chinese EV stocks rise after strong December deliveries

    Chinese EV stocks rise after strong December deliveries

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    Shares of Chinese electric-vehicle makers rose Tuesday in Hong Kong, led by Li Auto Inc., after strong December delivery data.

    Li Auto’s shares
    2015,
    +10.16%
    rose after it posted record-high monthly delivery figures for December last Friday, rounding out 2022 with a 47% increase in deliveries for the year.

    The car maker said December deliveries rose 51% from a year earlier, and said it was “the fastest emerging new energy automaker in China to surpass the 20,000 monthly delivery mark.”

    Li Auto’s shares were up by as much as 8.4% in early Tuesday trading. The city’s benchmark Hang Seng Index
    HSI,
    +1.66%
    was last up 0.7%.

    Although China’s persistent supply-chain shortages stemming from Covid restrictions slowed production and sales, Chinese electric-vehicle makers capped a wild year with strong delivery results.

    NIO Inc.
    9866,
    +2.36%
    delivered 122.486 vehicles for 2022, up about 34%, while XPeng Inc.’s
    9868,
    +7.04%
    deliveries were 23% higher compared with 2021.

    BYD Co.
    1211,
    +4.88%
    reported a 150% increase in December sales, despite production being disrupted by the unwinding of COVID-related measures in the final two weeks of the month. Citi analysts said in a note that they consider BYD a key winner of consolidation in the sector, and maintained a buy rating on the stock with a target price of 640 Hong Kong dollars (US$81.98). BYD shares were last up 3.1% at HK$198.4.

    Looking ahead, Citi analyst Jeff Chung projects EV sales in China could grow another 33% in 2023.

    Shares of Li Auto were last up 8.3% at HK$83.15, while those of XPeng were 5.1% higher at HK$40.3. NIO shares were last 2.6% higher at HK$80.5.

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  • Investments are set to flow back into China as tech giants avoid U.S. delisting, government pledges policy support, says investment manager

    Investments are set to flow back into China as tech giants avoid U.S. delisting, government pledges policy support, says investment manager

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    Chinese e-commerce giant Alibaba was one of the 100 over companies that had faced the risk of delisting in the U.S. in 2024 if it did not hand over the audits of their financial statements.

    Budrul Chukrut | Sopa Images | Lightrocket | Getty Images

    Investors could regain the confidence to put their money in Chinese tech stocks as these companies avoid delisting from U.S. stock exchanges and the Chinese government pledges policy support, according to one investment manager.

    Last week, U.S. accounting watchdog the Public Company Accounting Oversight Board said it gained full access to inspect and investigate Chinese companies for the first time, after China finally granted the U.S. access in August.

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    More than 100 Chinese tech companies such as Alibaba, Baidu and JD.com had faced the risk of delisting in the U.S. in 2024 if their audit information was not made available to PCAOB inspectors.

    Investors often grapple with a lack of transparency into Chinese stocks.

    “It will allow institutional investors to come back. Professional investors were very scared about this delisting risk which was why they have stayed on the sidelines,” Brendan Ahern, chief investment officer at U.S.-based investment manager KraneShares, told CNBC’s “Squawk Box Asia” on Wednesday.

    China tech: Expect to see more policies geared toward raising domestic consumption, KraneShares says

    As of Sept. 30, there were 262 Chinese companies listed on U.S. exchanges with a total market capitalization of $775 billion, according to the United States-China Economic and Security Review Commission.

    “With that risk going away based on the PCAOB announcement, you are going to see investment dollars flow back into these names,” said Ahern.

    “These internet giants are really where investors want to invest when it comes to China,” said Ahern.

    But he also caveated that it is still “early days, weeks, months to see that capital return back into the space.”

    Read more about tech and crypto from CNBC Pro

    But he also noted policy support will help to boost growth for these companies. Last week, China pledged to raise domestic consumption next year, as the country moves toward boosting growth after exiting its zero-Covid policy.

    “2023 is a year where we are going to have a lot of government policy support such as raising domestic consumption,” said Ahern. “About 25% of all retail sales goes through the companies.”

    “The Chinese government actually needs these internet companies, which explains why we have seen a backing off on some of the regulatory scrutiny we experienced in 2021,” said Ahern.

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  • Chinese Tesla rival Nio and giant Tencent partner to work on self-driving tech

    Chinese Tesla rival Nio and giant Tencent partner to work on self-driving tech

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    Nio is trying to stand out from a wave of Chinese electric vehicle competitors through its technology. The company is hoping its partnership with Tencent can help it boost its tech prowess in areas from mapping to autonomous driving.

    Anadolu Agency | Getty Images

    Chinese electric vehicle maker Nio and tech giant Tencent agreed to work together on areas including autonomous driving and high-definition mapping.

    Tencent — a gaming, social media and cloud computing titan — has signed a cooperation agreement with Nio, one of Tesla’s rivals in China, as the firms look to cash in on Beijing’s focus on so-called new energy cars.

    The partnership could allow Tencent to do this, while also giving Nio the technology backing of one of China’s biggest firms. Tencent is already a major investor in Nio, which is striving to differentiate itself from a sea of electric car start-ups.

    It comes after e-commerce firm Alibaba and Nio rival Xpeng in August opened a computing center to train software for driverless cars.

    Nio and Tencent said on Monday they will work together on high-precision mapping systems for drivers. Nio will also be using Tencent’s cloud computing infrastructure for data storage and training for autonomous driving. Driverless cars require huge amounts of real-time data to be processed in order to train algorithms.

    Tencent’s partnership with Nio gives the company another opportunity to push into new business areas as its core video gaming business, which has been battered by strict domestic regulation, continues to face headwinds.

    Nio meanwhile is facing its own challenges, including widening losses and pressure on margins from higher material costs and supply chain issues.

    Still, the company delivered 31,607 vehicles in the third quarter, marking a quarterly delivery record for the start-up.

    However, China’s once high-flying EV start-ups have seen their share prices hammered this year as investors turned away from growth stocks and China’s economy faced a slew of problems.

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  • Tesla shares down 3% in premarket after Elon Musk’s EV firm cuts price of cars in China

    Tesla shares down 3% in premarket after Elon Musk’s EV firm cuts price of cars in China

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    Tesla CEO Elon Musk attends an opening ceremony for Tesla China-made Model Y program in Shanghai, east China, Jan. 7, 2020.

    Ding Ting | Xinhua News Agency | Getty Images

    Tesla shares slipped in pre-market trade on Monday after the company cut the price of some of its cars in China.

    Shares of the electric carmaker were down around 3% in New York before the market open on Monday.

    Tesla slashed the price of its Model 3 and Model Y vehicles in China, one of the company’s most critical markets.

    The starting price for the Model 3 sedan was reduced to 265,900 Chinese yuan ($36,615) from 279,900 yuan. The Model Y sports utility vehicle now costs 288,900 yuan versus the previous price of 316,900 yuan.

    Tesla’s price cuts partly reverse some of the price increases the company was forced to carry out earlier this year in China and the U.S. on the back of rising raw material costs.

    Elon Musk, the CEO of Tesla, warned in March that his electric car firm is “seeing significant recent inflation pressure in raw materials & logistics.”

    The price cuts also come after Musk said he sees elements of a recession in China.

    “China is experiencing a recession of sorts” mostly in the property markets, Musk said last week.

    Tesla delivered 343,000 vehicles for the quarter ending September 30, missing analyst expectations. The company does not break out how many cars were delivered in China. Tesla also missed analyst expectation on revenue in the third quarter.

    However in September, the China Passenger Car Association reported Tesla delivered 83,135 China-made electric vehicles, a monthly record for the company. Tesla has a huge Gigafactory in the Chinese city of Shanghai which it completed upgrades on earlier this year.

    Still, the price cuts come in the face of rising competition for Tesla in China from domestic firms such as Warren Buffett-backed BYD as well as upstarts Nio and Xpeng.

    Other electric carmakers have hiked prices this year including BYD and Xpeng, as rising raw material costs hit these companies.

    The Chinese economy continues to face challenges particularly as strict Covid-19 controls continue to weigh on retail sales. Third-quarter gross domestic product rose 3.9% from a year ago, beating expectations, but remaining below the official target of around 5.5% growth.

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