The automotive industry experienced a rough phase last year. However, the increasing cost of fossil fuels and government initiatives to transition to a zero-emission environment should keep driving the electric vehicle (EV) industry’s growth. In addition…
rising investments from automakers and the expansion of charging infrastructure are expected to play major roles in driving the EV market’s growth.
China, which is considered the global leader in the production and sale of EVs, saw an explosion of EV consumer uptake this year, with a 177.6% increase in EV adoption year-over-year. The November sales of new-energy vehicles in China grew 16.8% over the past month.
Given this backdrop, we think it could be worth adding Chinese electric vehicles stocks NIO Inc. (NIO – Get Rating), XPeng Inc. (XPEV – Get Rating), and Li Auto Inc. (LI – Get Rating) to one’s watchlist. Wall Street analysts expect them to rally by more than 50% in price in the near term.
Headquartered in Shanghai, China, NIO designs, develops, manufactures, and sells smart electric vehicles in China. The company’s NIO Power provides mobile internet-based power solutions for battery charging and battery swap facilities. NIO markets and designs technology development activities, and manufactures e-powertrains, battery packs, and components.
For the third quarter, ended September 30, 2021, NIO’s total revenues increased 116.6% year-over-year to RMB9.81 billion ($1.54 billion). The company’s gross profit grew 240.2% from its year-ago value to RMB1.99 billion ($313.01 million). Its net loss decreased 20.2% from the prior-year quarter to RMB835.3 million ($131.18 million). Also, the company’s vehicle sales increased 102.4% year-over-year to RMB8.64 billion ($1.36 billion).
NIO’s revenue increased 120.3% year-over-year to $5.62 billion in its fiscal 2021. And its EPS is expected to grow 71.1% next year.
Closing the last trading session at $30.79, the average analyst price target of $60.67 for NIO represents a 97% potential upside.
Headquartered in Guangzhou, the People’s Republic of China, Smart electric vehicle company XPEV’s primary products include environmental-friendly vehicles, an SUV (the G3), and a four-door sports sedan (the P7). The company also provides sales contracts, maintenance, supercharging, vehicle leasing, and ride-hailing services.
In November, XPEV unveiled its new G9 flagship smart SUV that incorporates its latest state-of-the-art software architecture and hardware platform. The G9 is the company’s fourth production model and has been designed for both domestic Chinese and international markets.
During the third quarter, ended September 30, 2021, XPEV’s total revenues increased 187.4% year-over-year to RMB5.72 billion ($898.26 million). The company’s gross profit grew 796.7% from the year-ago value to RMB820.82 million ($128.9 million). And its cash and cash equivalents came in at RMB15.39 billion ($2.42 billion) during the period.
XPEV’s revenue is expected to increase 249.5% year-over-year to $3.17 billion in its fiscal 2021. Its EPS is estimated to grow 24.4% in the current year. The stock has surged…
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