Nio, Li Auto and Xpeng have all announced an increase in their delivery rate for 2020.
Leading Chinese electric car company Nio Inc (NYSE: NIO) has made one of the strongest starts to the year in its history as the company has recorded over 7,200 deliveries in the first month of the year alone. This is an increase of 352% in its yearly growth. Not only that, the stocks of the company has been performing very well too as Nomura gives the car a buy rating while Morgan Stanley pushed the company’s price targe to $80.
Today in the pre-market, Nio stock is up 3.23%, trading at $58.84.
According to the firm, its EC6 car model which is a 5-seater premium electric coupe SUV had the highest number of deliveries with 2,845. The car is followed closely by ES6 with 2,720 deliveries. ES6s are 5-seater high-performance premium smart electric SUVs of the company.
The third car with the highest numbers of deliveries is the company’s 6-seater and 7-seater flagship premium smart electric SUV, ES8.
In December, the company had witnessed its deliveries rise by 121%, thus the automaker had only continued its strong run from where it stopped previously. Cumulatively, the three cars have been delivered 82,866 times to their customers.
This is in line with CNBC’s earlier report that stated that electric carmakers in China have also began to witness an increase in the sale of their cars globally. According to the report, Nio, Li Auto and Xpeng have all announced an increase in their deliveries for 2020.
The auto industry in China has enjoyed the support of the government who have granted them subsidies, lesser regulations on license plates and also helping them build a charging infrastructure. This culminated in an increase of 4.4% in the sales of pure electric cars in the Asian country.
However, regardless of the level of progress being made by these startups, they still trail Tesla Inc (NASDAQ: TSLA) who is the leading electric carmaker company in the world. The Elon Musk-owned company has continued to enjoy massive patronage from the Asian country despite the hostility between the government of both countries especially during President Trump’s administration.
The firm is already looking to consolidate its hold as the leader in the market by stepping up its advertisements and promotional offerings. The company delivered five times more cars than what the three Chinese automaker startups were able to deliver globally in 2020.