What's Going On With Chinese EV Stocks XPeng & NIO on Tuesday?
Portfolio Pulse from Nabaparna Bhattacharya
Shares of Chinese EV manufacturers XPeng Inc. (XPEV) and NIO Inc. (NIO) are trading lower in the premarket session on Tuesday. XPeng reported a 99% monthly and 29% yearly increase in Smart EV deliveries for March 2024, with a total of 21,821 vehicles delivered in Q1 2024. NIO's March deliveries rose 14.3% year-over-year, with a total of 11,866 vehicles. Despite these positive delivery reports, XPEV and NIO stocks have lost over 29% and 52% in the past year, respectively. Investors can also gain exposure to NIO through ETFs like KraneShares MSCI China Clean Technology Index ETF (KGRN) and Invesco Golden Dragon China ETF (PGJ).
April 02, 2024 | 1:18 pm
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NEGATIVE IMPACT
KraneShares MSCI China Clean Technology Index ETF, which includes NIO, may be indirectly affected by NIO's performance.
As an ETF that holds NIO stock, KGRN's value may be indirectly impacted by NIO's stock performance, particularly if NIO's movements are significant enough to influence the ETF's overall performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
NIO Inc. experienced a year-over-year increase in vehicle deliveries but saw its stock price decline in the premarket session.
NIO's positive delivery report did not translate to stock price gains in the premarket session, possibly due to investor concerns over the company's long-term profitability or market-wide factors.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Invesco Golden Dragon China ETF, which offers exposure to NIO, might be indirectly influenced by NIO's stock movements.
Given that PGJ includes NIO in its holdings, any significant changes in NIO's stock price could indirectly affect PGJ's performance, although the impact may be moderated by the ETF's diversified portfolio.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
XPeng Inc. reported significant growth in Smart EV deliveries but is trading lower in the premarket session.
Despite reporting a substantial increase in deliveries, the premarket trading session saw a decline in XPeng's stock price, likely due to broader market sentiments or profit-taking after the announcement.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100