Why did Nio and XPeng stock drop but ChargePoint soared today

what happened

Chinese electric vehicle (EV) makers New (NIO -10.34%) And the XPeng (XPEV -11.55%) Both have made announcements recently about expanding their businesses, but investors are penalizing the stocks today anyway. Shares in a US-based EV charging company ChargePoint Holdings (CHPT -1.40%)On the other hand, it was rising today. As of 1:25 PM ET Wednesday, Nio and XPeng shares are down 8.9% and 11%, respectively. ChargePoint’s stock was far from its all-time high and trading around breakeven at the time.

so what

Nio has just announced that it has shipped its first battery swap station from its new facility in Hungary as it continues to expand into Europe. XPeng has officially launched its high-end SUV G9, which it anticipates will quickly become its best-selling and challenging vehicle. TeslaModel Y in China.

But both stocks are taking a heavy hit today as China’s macroeconomic picture casts a shadow over the company’s own news. ChargePoint operates charging networks in the US and Europe, so the stock won’t react to the same news as Chinese EV makers.

What now

ChargePoint shares have also risen over the past month as the Biden administration works on some spending that’s earmarked to help grow charging infrastructure locally. Nio is trying to drive a revolutionary change in electric vehicle charging with battery replacement stations. The company offers a battery-as-a-service option that allows consumers to pay a lower amount up front for one of its electric vehicles while effectively using the subscription service to replace empty batteries.

Nio already has over 1,100 switch stations in China where drivers can get a battery fully charged in a matter of minutes. Since Nio has started exporting its cars to Europe, it plans to add battery exchange stations there as well. Nio began shipping vehicles to Norway last year, and is adding other European countries to its list of export destinations this year. And that includes Germany, where Nio just sent out its first swap station this week. Nio has built a power facility in Hungary to carry out shipping exchange stations to Europe. The company said it expects to add 1,000 barter stations outside China by 2025.

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

But these two stores are on the move today despite going ahead with the business. This is likely due to the uncertain conditions in China related to the COVID-19 lockdown and the faltering real estate market. report from Baron Today I highlighted the ongoing correction in this market. Macro conditions in China are likely to be the reason for today’s bearish move. But if investors believe in the long-term success of both Chinese electric car makers, these declines may be an opportunity for higher-risk investments.

Howard Smith holds positions at ChargePoint Holdings Inc. and Nio Inc. and XPeng Inc. Motley Fool holds positions at Nio Inc. And Tesla recommends them. Motley Fool has a disclosure policy.

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