Spinee wrote a post · Sep 22, 2022 02:10

Why Nio and XPeng Shares Dropped

Nio just announced that it shipped the first battery-swap station from its new facility in Hungary as it continues to expand in Europe. XPeng formally launched its high-end G9 SUV yesterday, which it expects to quickly become its best-selling vehicle and challenge $Tesla(TSLA.US)$ 's Model Y in China.
But both stocks are being hit hard today.

$NIO Inc(NIO.US)$

$XPeng(XPEV.US)$

Nio already has more than 1,100 swap stations in China where drivers can obtain a fully charged battery pack in a matter of minutes. As Nio has begun exporting its vehicles into Europe, it has plans to add those battery-swap stations there, too. The company said it expects to add 1,000 swap stations outside of China by 2025.

XPeng is also growing its product offerings with the higher-end G9 SUV it launched this week. The company hopes to take on Tesla's Model Y with the new EV and expects it to become XPeng's best-selling vehicle.

But these two stocks are moving down today despite the businesses moving forward. That's likely from uncertain conditions related to COVID-19 lockdowns and a struggling real estate market.

However, if investors believe in the long-term success of both Chinese EV makers, these declines could be an opportunity for high-risk investments.

The above views are for reference only.

$BYD COMPANY(01211.HK)$ $Electric Vehicles(BK2568.US)$ $NIO Inc. USD OV(NIO.SG)$ $NIO-SW(09866.HK)$ $XPENG-W(09868.HK)$ $Tesla Concept(BK1180.HK)$ $Tesla(BK0426.SH)$

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ICEsh00ter : still bullish in the long run.

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Spinee OP ICEsh00ter : yeah

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TeslaSmurf : They will both have a great future because they have more than decent products and an almost limitless internal market demand. They try to expand in Europe and US because of the much higher prices in those markets BUT the battery-swap system will be a problem for Nio (not nearly competitive in terms of installation costs and maintenance compared to Tesla’s Supercharger network, while XPeng will end paying Tesla for the service as most of the others. Nobody else is ready and Tesla will be overtaking a good part of the gas stations (and the collateral business) all over the world: that is really HUGE and not many investors think about it.

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Sam The Greater : Because Chinese cars are trash

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