#NIO #XPENG #NIOSTOCK
This video goes into detail on a comparison of NIO and XPENG, two China based electric vehicle companies gaining huge share price growth in the last few months
The first stock I analyse is NIO (Ticker: NIO), NIO has a fantastic brand associated with it, often referred to as the "Tesla Of China" given its style, sales and innovation. NIO is highly covered in the press with hundreds of articles produced about the company and their plans. NIO has close to 200 NIO Houses and NIO Spaces where customers and prospective customers can go an have coffee, use the library, use the children's day care, learn more about the brand and enjoy themselves.
NIO's share price has grown 200% in the last 3months, 100% in the last month and 37% in the last month while this is amazing the growth is coming to a "mature" phase, whereas XPENG stock has grown 60%, 70%, 80% over the same period. The shows that XPENG might be entering the huge growth phase NIO was in 2 or 3 months ago and could present a very good buying opportunity before the growth matures
XPENG has a manufacturing facility in Zhaoqing allowing for a capacity of 100,000 units per year and is in talks of opening a second facility in Guangdong Province. NIO does not have a manufacturing facility like XPENG and uses JAC Motors to produce its vehicles with a capacity of 5000 units per month, 150,000 units per year on double shift
Both NIO and XPENG have mentioned their intentions to expand into Europe in 2021. XPENG have sent 100 units of their G3 model to Norway making great steps towards launching in Europe.
Both NIO and XPENG offer batter as a service and have mentioned plans to offer self driving capabilities. However, NIO is the only one of the two that offers battery swapping. Battery swapping allows users to quickly and efficiently book and swap out their battery for a fully charged one in 3 minutes. NIO has completed over 1 million battery swaps and this number is growing rapidly as the market warms to battery swapping. NIO also offers NIO Power, which is a bookable service where a driver will come out and fully charge your vehicle. The NIO mobile application also offers users with a unique experience of posting pictures, car troubleshooting, booking charging slots and engaging with other NIO app users. The app has close to 1 million downloads and 200,000 daily active users
NIO sold 5,055 units in October, growth of 100% year on year, XPENG sold 3,040 units in the same period growing 229% year on year. XPENG has faster growth but lower volume than NIO
NIO's stock priced at 35x 2020 sales forecast, XPENG is priced at 25x 2020 sales forecast. XPENG is much more expensive than NIO but it is growing faster.
In my opinion given the innovation and brand image NIO is the better stock and I believe will be the superior company in the foreseeable future
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