Nio, Xpeng Take Twice As Long As Tesla To Pay Suppliers: What's Ailing Chinese EV Makers?
Portfolio Pulse from Anan Ashraf
Chinese EV makers Nio Inc (NYSE:NIO) and Xpeng Inc (NYSE:XPEV) are taking over 200 days to pay their suppliers, more than twice the time taken by Tesla Inc (NASDAQ:TSLA). Nio took 295 days and Xpeng took 221 days as of the end of 2023. Both companies have been struggling with profitability, reporting significant net losses and declining profit margins. Nio's and Xpeng's shares have dropped significantly year-to-date.
May 20, 2024 | 9:35 am
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POSITIVE IMPACT
Tesla is taking around 101 days to pay suppliers, significantly less than Nio and Xpeng. Tesla's payment period has remained stable over the past three years, indicating better financial management.
Tesla's shorter payment period to suppliers and stable financial management compared to Nio and Xpeng indicate a positive short-term impact on its stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Nio is taking 295 days to pay suppliers, significantly longer than Tesla. The company reported a net loss of 20.72 billion yuan in 2023, with declining profit margins. Nio's shares have dropped about 37% year-to-date.
Nio's extended payment period to suppliers and significant net loss indicate financial struggles, leading to a negative short-term impact on its stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Xpeng is taking 221 days to pay suppliers, significantly longer than Tesla. The company reported a net loss of 10.38 billion yuan in 2023, with declining profit margins. Xpeng's shares have dropped nearly 41% year-to-date.
Xpeng's extended payment period to suppliers and significant net loss indicate financial struggles, leading to a negative short-term impact on its stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100