EV Roundup: LI’s 106% Y/Y Delivery Growth, TSLA’s 2.2M Vehicle Recall & More

China-based EV players NIO Inc. NIO, XPeng Inc. XPEV and LI Auto LI recorded year-over-year growth in January 2024 deliveries, with LI holding the top spot. Li Auto witnessed a whopping 105.8% year-over-year increase in vehicle deliveries last month, setting ambitious goals for further growth and innovation in China’s new energy vehicle market.

NIO witnessed an 18.2% year-over-year surge in January deliveries. It forged strategic partnerships and spearheaded Zhongan Energy for a widespread battery swap network.

XPeng deliveries increased 58% last month. It introduced the X9 Ultra Smart Large Seven-seater MPV and witnessed strong demand for its X9 Max trim. With plans to expand XNGP coverage nationwide and initiate research and development for overseas markets, XPeng remains committed to innovation in the smart EV sector.

EV startup Canoo Inc. GOEV has electrified Zeeba’s fleet, adding 3,000 lifestyle delivery vehicles (LDVs). This marks an increasing shift toward sustainable commercial transportation.

Ev titan Tesla TSLA recalled 2.2 million vehicles in the United States over small font size in warning lights, heightening safety concerns.

While NIO currently carries a Zacks Rank #2 (Buy), LI and TSLA are #3 Ranked (Hold) each. Meanwhile, GOEV and XPEV carry a Zacks Rank #4 (Sell) currently.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Inside the Headlines

Li Auto reported 31,165 vehicle deliveries in January 2024, marking a remarkable 105.8% year-over-year increase. The company’s cumulative deliveries were 664,529 vehicles as of Jan 31, 2024.

The company plans to introduce eight competitive models, including four EREVs and four BEVs, starting with the launch of its flagship family MPV, Li MEGA, in March. Additionally, Li Auto aims to enhance its technical capabilities in autonomous driving, smart space, and smart electrification while expanding its sales and servicing network to meet customers’ evolving demands. The company targets 800 retail stores and more than 500 Li Auto-authorized body and paint shops by the end of 2024, aiming for an annual delivery target of 800,000 vehicles and positioning itself as the best-selling premium auto brand in China.

In line with its commitment to customer satisfaction, Li Auto announced that all 330 of its supercharging stations would be operational during the Chinese New Year holiday, offering complimentary electricity and charging services to users. As of Jan 31, 2024, Li Auto had 474 retail stores in 142 cities, along with 360 servicing centers and Li Auto-authorized body and paint shops in 209 cities.

NIO delivered 10,055 vehicles last month, marking an 18.2% year-over-year increase. The deliveries comprised 6,307 SUVs and 3,748 sedans. The company’s cumulative deliveries reached 459,649 vehicles as of Jan 31, 2024.

NIO has expanded its influence in the industry by opening its power swap network to collaboration and signing strategic partnerships with major players like JAC Group and Chery Automobile. Moreover, NIO has taken a significant step toward advancing sustainable mobility with the establishment of Zhongan Energy, a company focused on creating an open and shared charging, swapping and energy storage network. Zhongan Energy aims to build 1,000 battery swap stations across China in the coming years, aligning with NIO’s vision of widespread adoption of battery swapping technology.

In another development, NIO successfully concluded its repurchase right offer concerning its 0.00% convertible senior notes due 2026. The offer, which expired on Jan 31, 2024, resulted in $300,536,000 aggregate principal amount of the notes being validly surrendered and not withdrawn. Following the settlement, the $912,000.00 aggregate principal amount of the notes will remain outstanding. This underscores NIO’s commitment to financial management and its ongoing strategy in the premium smart EV market.

XPeng delivered 8,250 EVs in January 2024, marking a 58% year-over-year increase. Among these deliveries, the introduction of the X9 Ultra Smart Large Seven-seater MPV garnered notable attention, with 2,478 units delivered in its inaugural month. Impressively, orders for the X9 Max trim comprised approximately 70% of total X9 orders, highlighting its popularity among consumers. XPeng is currently enhancing production capacity for X9 to meet growing demand.

XPeng’s cutting-edge ADAS technologies provide significant value to its customers, with XNGP now accessible to users in 243 cities across the nation, offering the most extensive coverage of ADAS functions tailored for urban driving scenarios. Notably, the monthly active user penetration rate of XNGP ADAS has surpassed 85%, positioning XPeng as an industry leader in terms of active user scale, user experience and mileage penetration rate for urban ADAS systems.

The company aims to expand XNGP coverage to major urban road networks, parking spaces, and private roads nationwide by 2024. Furthermore, XPeng plans to commence research and development on Highway NGP for overseas markets this year and on XNGP in 2025.

Canoo successfully expanded Zeeba’s fleet with electric vehicles, marking a significant step forward in the electrification of commercial fleets across the United States. As part of an existing agreement, Canoo added a total of 3,000 LDV EVs to Zeeba’s national fleet out of a binding commitment of 5,450 electric vehicles.

Canoo’s CEO, Tony Aquila, emphasized the strategic partnership’s importance in meeting the growing demand for sustainable transportation options. Kayvon Marashi, CEO at Zeeba, expressed enthusiasm for integrating Canoo’s innovative line of EVs into their fleet, citing the vehicles’ efficiency, comfort and functionality as key factors driving client interest. With over 1,000 clients eagerly awaiting Canoo vehicles, Zeeba anticipates that the LDVs will be a game-changer for fleets of all sizes, catering to the increasing demand for environmentally friendly transportation solutions.

Last to last week, Canoo secured a deal to sell six battery-electric right-hand drive versions of the LDV 190 to the U.S. Postal Service. Deliveries are slated in the first quarter of 2024. This purchase is part of the USPS’s ambitious $40 billion investment plan to modernize its delivery fleet, marking a crucial step in the electrification of its operations.

Tesla issued a recall for 2.2 million vehicles in the United States due to concerns regarding the font size of warning lights on the instrument panel. The small font size, particularly for brake, park, and antilock brake system warnings, poses readability challenges, potentially increasing the risk of accidents, as indicated by the National Highway Traffic Safety Administration (NHTSA). This font size discrepancy is reported to be in violation of federal safety standards. The NHTSA announced the recall following a routine audit of Tesla vehicles.

Tesla stated no knowledge of any accidents or injuries resulting from this issue. The recall affects various models, including the Model S (2012-2023), Model X (2016-2024), Model 3 (2017-2023), Model Y (2019-2024) and 2024 Cybertruck vehicles. The company plans to address the problem through an over-the-air software update, eliminating the need for owners to visit a Tesla service center. Owner notification letters will be sent out starting Mar 30.

In a separate development, the NHTSA disclosed on Thursday a preliminary evaluation concerning reports of power steering issues in certain Tesla vehicles. Specifically, 2,388 complaints have been identified regarding steering control loss in select 2023 Tesla Model 3 and Model Y vehicles. Tesla has issued a number of recalls recently, targeting backup camera malfunctions and autopilot system flaws, following extensive investigations by the NHTSA into related incidents.

Price Performance

The following table shows the price movement of some of the major EV players over the last week and six-month period.

Image Source: Zacks Investment Research

What’s Next in the Space?

Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.

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