Nikola (NKLA) and Nio (NIO) are scheduled to announce quarterly results on August 3 and 11, respectively, with Xpeng (XPEV) and Li Auto (LI) expected to report earnings later this month. What to watch for:
1. BUY NIO, NIKOLA: Back in June, Citi analyst Jeff Chung upgraded Nio to Buy from Neutral with a price target of $58.30, up from $57.60. The analyst also lifted his 2021 China new energy vehicles sales forecast to 2.52M units from 1.79M units and 2025 sales forecast to 7.84M units from 6.86M units. For Nio, Chung expects acceleration in the second quarter order backlogs to "substantially increase" its second half of 2021 revenue visibility and market share, followed by a 2022 new model cycle. Chung expects accelerating orders and believes Nio is the new energy vehicles sector's "Beta proxy."
Meanwhile, BTIG analyst Gregory Lewis started Nikola with a Buy rating and $18 price target. The analyst argued that the company continues to move forward with its "dual-pronged strategy" of helping transition the heavy-duty Class 8 truck market to battery-electric trucks and hydrogen fuel cells. While he expects some initial production delays, Lewis also expects Nikola's battery-electric trucks production to start ramping in the second half of 2022 with the hydrogen hydrogen fuel cells solution hitting the market by 2024.
2. SECURITIES FRAUD SCHEME: Audrey Strauss, the United States Attorney for the Southern District of New York, and Phillip R. Bartlett, Inspector-in-Charge of the New York Division of the United States Postal Inspection Service, announced last week the unsealing of a criminal indictment charging Trevor Milton with securities and wire fraud in connection with his scheme to defraud and mislead investors about the development of products and technology by the company he founded, Nikola. Manhattan U.S. Attorney Audrey Strauss said that, "As alleged, Trevor Milton brazenly and repeatedly used social media, and appearances and interviews on television, podcasts, and in print, to make false and misleading claims about the status of Nikola's trucks and technology. But today's criminal charges against Milton are where the rubber meets the road, and he now will be held accountable for his allegedly false and misleading statements to investors."
3. DELIVERIES: Over the weekend, Li Auto announced that the company delivered 8,589 Li ONEs in July 2021, crossing the 8,000-vehicle milestone for the first time while hitting a new record. The deliveries were up 11.4% month over month and 251.3% year over year, a remarkable rate of growth. As of July 31, 2021, total deliveries in 2021 reached 38,743, bringing cumulative deliveries of Li ONE to 72,340 since its market debut. The company also said it is accelerating the expansion of its direct sales and servicing network. As of July 31, 2021, Li Auto had 109 retail stores in 67 cities, as well as 176 servicing centers and Li Auto-authorized body and paint shops operating in 134 cities.
Meanwhile, Nio has announced it delivered 7,931 vehicles in July, representing a 124.5% year-over-year growth. The deliveries consisted of 1,702 ES8s, the company's six-seater or seven-seater smart electric SUV, 3,669 ES6s, the company's five-seater smart electric SUV and 2,560 EC6s, the company's five-seater smart electric coupe SUV. As of July 31, cumulative deliveries of the ES8, ES6 and EC6 reached 125,528 vehicles.
XPeng also announced its vehicle delivery results for July. For this month, XPeng recorded its highest-ever monthly deliveries of 8,040 Smart EVs, representing a 228% increase year-over-year, and a 22% increase over last month. Deliveries in July consisted of 6,054 P7s, the company's sports smart sedan, and 1,986 G3s, its smart compact SUV. As of July 31, year-to-date total deliveries of the company reached 38,778 units, representing a 388% increase year-over-year.
4. TESLA EARNINGS RESULTS: For more on Tesla's (TSLA) second quarter earnings results, see The Fly's latest "Charged."
Nikola
-0.58 (-4.89%)
Nio
+1.385 (+3.10%)
XPeng
+2.825 (+6.97%)
Li Auto
+0.27 (+0.81%)
Tesla
+26.64 (+3.87%)