According to Allied Market Research, the global electric vehicle market is expected to reach $802.81 billion by 2027, growing at a CAGR of 22.6% (2020-2027). Here are 2 Chinese electric car stocks to watch in 2022.
Nio Inc.
Nio Inc. (Ticker: NIO) is a leader in the rapidly growing electric vehicle market. Founded in November 2014 by William Li, the company revealed its first vehicle model, the NIO EP9 sports car in 2016.
Nio History
After revealing their second model in 2019, the ES6, Nio began to gain notoriety in the electric vehicle market. The ES6 is a mid-sized 5-seat SUV that comes equipped with a steel body, dual motor 4WD, and active air suspension. The ES6 brings a combination of joy and comfort, with an impressive 4.7-second speed from 0-100 km/h.
NIO ES6
Nio BaaS (Battery as a Service)
On July 9th, 2021, NIO held its first NIO Power day in Shanghai, China. On this day the company shared its core technologies, while unveiling ‘’NIO Power 2025.’’ This would be just the beginning of the company’s battery swap deployment plan.
NIO’s battery swap service system, provides an extensive network of battery swap stations, charging stations, powel mobiles, and service teams.
The 100 kWh battery pack costs RMB 58,000 ($8,774). Their ‘’flexible battery upgrade plan’’ announced on November 6th, 2020, allows owners with the 70 kWh battery to upgrade to the 100 kWh option for RMB 880 ($133) per month, or RMB 7,980 ($1,207) per year.
As of July 2021, the company has deployed 301 power swap stations, 204 power charging stations and 600,000 uses of One-Click-for-Power services. From 2022 – 2025, Nio plans to have 600 new battery swap stations in China. By the end of 2025, they plan to have more than 4000 battery swap stations worldwide, and around 1000 outside of China.
Long story short, the company has placed a huge emphasis on their BaaS services, while other EV companies have stuck with the traditional charging networks. Furthermore, Nio’s battery packs being swappable, this allows the owner to replace the battery without having to purchase a new one. So if you’re looking for a longer range, and more flexibility, their new system allows you to swap batteries in just 5 minutes.
Nio Deliveries (2021)
On January 1st, 2022, Nio announced their fourth quarter and full year delivery update. The company achieved a new quarterly record and delivered a total of 91,429 vehicles in 2021.
Highlights:
- NIO delivered 10,489 vehicles in December 2021, increasing by 49.7% year-over-year
- NIO delivered 25,034 vehicles in the three months ended December 2021, increasing by 44.3% year-over-year
- NIO delivered 91,429 vehicles in 2021 in total, increasing by 109.1% year-over-year
- Cumulative deliveries of the ES8, ES6 and EC6 as of December 31, 2021 reached 167,070
What’s Next?
Nio is a leading electric vehicle manufacturer accelerating deliveries in 2022, while continuing to progress with its international expansion plans. In September 2021, the company announced their expansion into Oslo, Norway, with the launch of their ES8 model.
On January 14, 2021, they also announced the launch of their U.S. headquarters in San Jose, CA. Their 200,000+ SQ of office space will supports Nio’s R&D, testing, warehousing and operations.
With Nio’s strong year-over-year deliveries, revenue growth, and international expansion underway, Nio remains a top electric vehicle stock to watch in 2022.
Xpeng Motors Technology Co Ltd.
Xpeng Motors (Ticker: XPEV) commonly known as ‘’Xpeng’’, is a leading Chinese electric vehicle manufacturer. Founded in 2014 by He Xiaopeng and Xia Heng, former senior executives at GAG Group. The company released its first vehicle model in 2018, the Xpeng G3 SUV.
Xpeng History
They began vehicle production of its first model, the G3 SUV, in December 2018. They later launched their second vehicle model, the P7, in April 2019 at the Auto Shanghai show.
Xpeng attracted a large sum of notable investors in China. Some of the investors included Alibaba, Xiaomi Corporation, GGV Capital, Hillhouse Capital, and Sequoia Capital China. The P7, all-electric sports sedan comes with a large range of features including; up to 706km range, XPILOT 3.0 driver assistance, next generation voice-assistant, ultra-fast charging and more.
XPENG P7
P7 Performance & Features
- Dual-engine double computing power
- Autonomous driving computing capability
- Smart parking assistant
- Fast charging: from 30% to 80% in as little as 28 minutes
- XPILOT3.0: is an autonomous driver assistance system with 12 ultrasonic sensors, and 5 millimeter-wave radars.
- Qualcomm Snapdragon 820 high-performance car processor with Xpeng Xmart OS 2.0.
- Bosch/Brembo braking system featuring new-generation Bosch iBooster braking recycling, c.100% energy recovery, and a 35-meter brake distance at 100 km/h.
- Maximum Torque Output: 196kW/390Nm
Xpeng Motors Deliveries (2021)
On January 1st, 2022, Xpeng Motors announced their fourth quarter and full year delivery update. The company delivered a total of 98,155 vehicles in 2021.
Highlights:
- Xpeng delivered 16,000 smart EV’s in December 2021, a 181% increase year-over-year
- Xpeng delivered 41,751 vehicles in Q4 2021, a 222% increase year-over-year
- Xpeng delivered 98,155 total vehicles in 2021, a 263% increase year-over-year
- Cumulative deliveries reached 137,953 for the P7 & G3 models as of the end of December 2021
What’s Next?
Xpeng Motors is coming off a strong year in 2021, as the company ramped up production and deliveries of its P7 and G3 vehicle models. In August 2021, the company announced their expansion of the P7 vehicle model into Norway. They are one of the few Chinese electric car companies to expand into international markets. In November 2021, they also announced the launch of their new electric SUV, the G9, with plans to rival Tesla’s Model Y, and Nio’s ES6.
The G9, is purpose built for international markets, with production planned to begin in the third quarter of 2022 in China. With continued momentum, strong year-over-year delivery growth, Xpeng Motors remains a top Chinese electric car stock to watch for 2022. However, investors must keep in mind that sustained inflation might impact growth stocks for the remainder of 2022.
Disclosure: The author holds a position in NIO Inc. and does not hold a position in Xpeng Motors Technology Co Ltd. Freedom Stocks has recommended Nio Inc. in 2020 and 2021. Freedom Stocks has a disclosure policy.
