Chinese electric vehicle manufacturer NIO Inc. (NYSE: NIO) gained a positive trend this week. Despite a temporary shortage of semiconductors, investors praised the steady growth in electric vehicle supply in China.
It is the Chinese market that sells the most electric vehicles in the world and continues to grow. The number of machines shipped by NIO in May 2021 increased 95% year-over-year to 6,700. The semiconductor shortage impacted supply growth. Nevertheless, NIO forecast supply remains unchanged of 21 – 22 thousand cars in the second quarter.
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NIO Inc. (NYSE: NIO) is being overtaken in shipments by Xpeng. Xpeng delivered 5,700 vehicles to its customers in May and has delivered more than 24,000 vehicles since the beginning of the year.
Xpeng is best known for its navigation and driver assistance technologies. The company expects to achieve higher levels of automation via more attractive and affordable solutions than its competitors. XPeng’s XPILOT 3.0 system has been enhanced to allow for automatic lane changes in early 2021. Future versions of the XPILOT 3.0 system are expected to function as full-fledged autopilots without constant driver intervention. In addition to operating systems for electric vehicles, Xpeng offers an operating system that can be updated on WiFi. By pursuing such a strategy, Xpeng wants its machines to lead in terms of the degree of innovation.
Tesla Inc. (NASDAQ: TSLA) has already used similar technologies, and the American company has leapfrogged the competition in this area. On the other hand, this eases the path somewhat for Xpeng and NIO since they can use other people’s experiences to assess existing trends.
NIO Inc. (NYSE: NIO) stock concluded the last session at $41.16, declining -2.79% or -$1.18. The stock price fluctuated between $40.95 and $42.88 throughout the session. A total of 66.38 million shares were traded, which is lower than its fifty-day daily volume of 80.82 million and lower than its year-to-date volume of 96.28 million. The company’s stock has advanced 775.74% in the past 12 months, and the share price has increased 14.11% for the last week. Over the past six months, the stock has lost -18.54%, and over the past three months, it has decreased by -0.89%. Since the beginning of the year, the stock has returned -15.55%.