Nio, XPeng and Li Auto rally after yearly reports indicate strong demand trend
Chinese electric vehicle stocks are higher after deliveries reports for December show strong demand with XPeng (NYSE:XPEV), Nio (NYSE:NIO) and Li Auto (NASDAQ:LI) all posting triple-digit gains compared to last year.
Chinese electric car makers reported a triple digit growth of deliveries in 2021, despite resurgence of Covid-19 outbreak disrupted the supply of components to their factories.

Other major NEV brands in China also announced 2021 deliveries, including Aion (123.66K units, +119% Y/Y), Volkswagen ID (OTCPK:VWAGY) (70.6K units), Leapmotor (43.1K units), BYD
(OTCPK:BYDDY), Great Wall Motor (OTCPK:GWLLF, OTCPK:GWLLY) (44.1K units).
Other Chinese automakers: NezhaâHozon and Geely Automobile (OTCPK:GELYF), Kandi Technologies (NASDAQ:KNDI), Guangzhou Automobile Group (OTCPK:GNZUF), BAIC (OTC:BCCMY), Zotye, state-owned SAIC Motor, Chery and Dongfeng Motor (OTCPK:DNFGY)

Among the trio, XPEV reported highest delivery growth of 263% Y/Y to 98,155, LI reported 177% Y/Y delivery growth of 90,491, Nio reported growth of only 109% Y/Y to 91,429 on supply chain issues.
Nio M/M vehicle delivery fell 7 times last year, XPEV and LI M/M delivery fell 3 times.
NIO blamed the decline in M/M deliveries on the impact of COVID-19 on its supply chain, saying that the sole supplier of A/B pillar interior trim panels for ES6 and EC6, Nanjing Nantiao Quanxing, stopped production for a period of time, which affected supply.
In addition, the COVID-19 outbreak affected chip production at STMicroelectronics, which is a supplier of Bosch ESPs, thus affecting Bosch's supply to it.
In premarket action, Li Auto (LI) +2.5%, Nio (NIO) +2.2% and XPeng (XPEV) +2.8% are all notably higher. Tesla (NASDAQ:TSLA) is also up 6.8% after the strong read on China EV demand.