Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
With 7000 units delivered in December 2020, Nio recorded a fair growth in five straight months.
The Chinese automobile market has over the last few years recorded positive numbers in reflection of the introduction of looser restrictions of license plates, subsidies, and the building out of charging infrastructures. All major Chinese startups including Nio Inc (NYSE: NIO), Xpeng Inc (NYSE: XPEV) and Li Auto Inc (NASDAQ: LI) listed in New York experienced a surge in 2020 according to reports.
Though the Chinese automobile companies stepped up their games in the previous year, their efforts and results still fell short of that of Tesla Inc (NASDAQ: TSLA). Tesla in the 2020 business year sold cars 5 times higher than the combined sales of Nio, Xpeng, and Li Auto.
Nio Performance in the Chinese Automobile Market
Nio was launched in 2018 but unfortunately did not enjoy the expected run as it went into a difficult financial year in 2019. However, it was able to secure $1 billion to get back on track when China was severely affected by the Covid-19 pandemic. Nio was able to make deliveries of 43,728 last year which more than doubled its deliveries in the previous year.
With 7000 units of Delivery in December 2020, Nio recorded a fair growth in five straight months. William Bin Li, Founder, CEO, and Chairman of Nio in a report acknowledged the difficulties met in the year and the resilience shown by the company to thrive.
“Against this backdrop, NIO has achieved consecutive record-highs along the way, and closed the year on a high note with remarkable December deliveries of over 7,000 vehicles,” he said.
Nio shares recorded a pullback after recording an all-time high price of $57.20 in November. The pullback is said to be linked to a regulatory crackdown by the Chinese government and unsustainable valuation. The popularity of its battery as-a-service scheme among customers, expanding sales network, competitive and compelling products and services, as well as premium brand recognition played a huge role in its performance.
Xpeng in 2020
XPeng on the other hand also more than doubled its delivery in 2020 with 27,041 vehicles compared to the previous year. According to reports, After its IPO on the New York Stock Exchange, its shares surged by over 185% thanks to the mass production of the P7 Sedan in June that accounted for over half of the total vehicles delivered. For two consecutive months, the company made a delivery of 5700 electric cars till December according to reports.
Results of Li Auto
Li Auto, just a year after making its first successful delivery of its vehicle to a customer went ahead to deliver 32,624 cars in 2020. Since its shares were recognized on Nasdaq in July, it recorded a surge of more than 150%. Li Auto as of the last day of 2020 had 52 retail stores spread across 41 cities. In just December, 6126 Li Ones representing 31.9% month-over-month and 529.6% year-over-year was delivered by the company.