Guilherme ISS
11-21

Nio, Xpeng, and the EV Landscape: Which Stocks to Bet On?

Nio's Q2 2024 results showed a net loss of $624.1 million, but delivery numbers are up 35.8% YoY from January to August! Moderate Buy rating and $5.97 price target imply 8.84% upside.

Xpeng faces execution issues and poor margins (6.4% vs. Nio's 12.2% and Li Auto's 18.7%). However, its tech focus and autonomous driving capabilities show promise.

Li Auto boasts superior margins, profitability, and attractive valuation (P/S ratio of 1.1x). Moderate Buy rating and $26.82 price target make it a compelling long-term bet.

Other EV Contenders:

- BYD: Established player with strong domestic and international presence.

- Tesla: Global EV leader with a $100B+ brand value.

Key Takeaways:

-Nio's delivery growth is encouraging, but profitability concerns remain.

-Xpeng needs to address execution issues to realize tech potential.

-Li Auto's margins and profitability make it an attractive long-term investment.

XPeng Beats While NIO Lags: Which EV Will You Bet?
XPeng jumps 4% in the premarket trading after it reported third-quarter revenue of 10.1 billion yuan, compared to 8.53 billion yuan in the same period last year. The market had anticipated revenue of 9.91 billion yuan. Nio drops 5% after earnings. Revenue was 18.6735 billion yuan, a year-on-year decrease of 2.1%. Net loss amounted to 5.0597 billion yuan, an increase of 11.0% compared to the same period last year. --------------- XPeng Beats, NIO Misses: Which EV Maker Do You Bet On Amid the Shake-Up? What's your target price?
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