XPeng, NIO, Li Auto Report Big December Deliveries. That’s Good For Tesla.

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Updated Jan. 1, 2022 12:02 p.m. ET / Original Jan. 1, 2022 12:01 p.m. ET

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XPeng Motors astatine the Wuhan Motor Show connected Oct. 21, 2021 successful China. XPeng reported beardown deliveries for December.

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The 3 U.S.-listed Chinese electrical vehicle makers started 2022 disconnected with a bang, each reporting large transportation figures for December.

NIO (ticker: NIO), XPeng (XPEV) and Li Auto (LI) connected Saturday greeting each reported deliveries. Combined, the 3 shipped much than 40,000 units. That’s a monthly grounds and is 1 motion that Tesla (TSLA) should station its ain large fig erstwhile it reports 4th transportation figures successful coming days.

About 25% of each Tesla deliveries are generated successful China. Investors expect Tesla to study northbound of 280,000 deliveries worldwide for the 4th quarter.

Among the Chinese three, XPeng took the December, and 2021, crown reporting 16,000 deliveries, a caller monthly record. For each of 2021, XPeng delivered 98,155 vehicles, up 263% compared with 2020.

Li delivered 14,087 units successful December. That’s a monthly grounds for Li too. For each of 2021, Li delivered 90,491 vehicles, up 177% compared with 2020.

NIO didn’t acceptable a caller monthly record, conscionable missing it by a fewer 100 units. The institution shipped 10,489 vehicles successful December. NIO’s monthly transportation grounds came successful November, erstwhile it shipped 10,878 units. For the afloat year, NIO delivered 91,429 vehicles successful 2021, up 109% compared with 2020.

Even though XPeng delivered much cars successful 2021, NIO has inactive delivered the astir of the 3 implicit the company’s life. NIO has delivered much than 167,000 vehicles beingness to date. XPeng and Li person delivered astir 125,000 and 123,000 vehicle, respectively.

December conveyance deliveries for each EV producers mightiness person been boosted by a subsidy chopped coming for Chinese car buyers successful 2022. Buyers rushed to get a somewhat amended deal. The Chinese acquisition subsidy for an EV is astir 10,000 Yuan, ($1,500), from 14,400 Yuan ($2,200). The $700 quality amounts to astir a 2% terms bump for emblematic EVs.

Falling subsidies are 1 origin investors volition person to see regarding Tesla and Chinese EV makers successful 2022. But higher December deliveries mean that net estimates for NIO, XPeng, Li, and apt Tesla, volition emergence successful coming weeks. More cars than expected means much income and amended bottommost enactment results.

Strong transportation results mightiness besides assistance shares aboriginal successful 2022. Shares of Tesla, XPeng and Li had a bully to large 2021, gaining 50%, 18% and 11%, respectively. NIO shares struggled, dropping 35% successful 2021. The S&P 500 and Dow Jones Industrial Average gained 27% and 19%, respectively.

Starting valuation is 1 crushed for NIO stock’s struggles. Even aft underperforming, NIO’s marketplace capitalization is astir $54 billion, much than the $43 cardinal marketplace headdress of XPeng and the $33 cardinal marketplace headdress of Li.

Tesla, of course, ended 2021 with a marketplace capitalization northbound of $1 trillion. It’s expected to present astir 900,000 vehicles for 2021.

Write to Al Root astatine allen.root@dowjones.com

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