Nio Rival Xpeng Says It Could Beat Q2 Delivery Target Despite Chip Shortage Concerns

Chinese automaker Xpeng Inc XPEV is on track to meet or beat second-quarter deliveries, Bloomberg reported Tuesday.

What Happened: In an interview with Bloomberg, Xpeng CEO Brian Gu said, “We are on track to meet or exceed second-quarter delivery numbers, which I think means Chinese EV demand is still very strong.”

“After a short pause during [Chinese New Year], the industry has rebounded very strongly and I think the whole year outlook is very, very strong as well,” said Gu.

In May, Xpeng delivered 5,686 vehicles, which is a 483% increase year over year.

In terms of a breakdown, Xpeng delivered 3,797 P7 sports sedans and 1,889 G3 compact sports utility vehicles in May.

Year-to-date deliveries ratcheted up to 24,173, which is a 427% y-o-y increase. 

Why It Matters: While Xpeng has reported upbeat numbers, rival Nio Inc NIO saw a dip in deliveries on a sequential basis in May.

Nio delivered 6,711 vehicles in May, which is a 5.5% fall compared to April, but a 95.3% jump on a y-o-y basis. Nio has marked the third monthly decline in deliveries as of May.

The Xpeng rival’s deliveries have suffered due to the ongoing semiconductor shortage.

This year, chip shortages have affected automakers like Ford Motor Company F and General Motors Company GM. Tesla Inc TSLA too closed its Fremont, California plant due to a parts shortage.

See Also: Elon Musk Says Tesla EV Price Hikes Happening Due To Supply Chain Issues

Gu told Bloomberg that he expects the chip shortage to ease in the second half and “hopefully by early next year we’ll be back to normal again.”

A survey carried out by Automotive News found that 93% of respondents said that chip shortage will have a severe impact on the automotive industry. 72% said the crisis will impact the industry for at least six months.

Price Action: On Tuesday, Xpeng shares closed 7.69% higher at $34.60 in the regular session and fell 0.43% in the after-hours trading.

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Photo by Jengtingchen on Wikimedia