In 2021, the "Wei Xiaoli" that shined brightly welcomed the decline of subsidies

Source | Official account: capitalwatch

2021 was a very successful year for Chinese electric vehicle manufacturers NIO, Xiaopeng and Ideal Cars, and ended with multiple record numbers. However, one piece of news cast a shadow over the December surge in delivery data: China's Ministry of Finance announced it would cut subsidies for new energy vehicles by 30 percent this year and end them after 2022.

As always, here's the CW's daily update to China's top three EV stocks.

Shares of NIO (NYSE: NIO) rose 6 percent on Monday after the company reported 50 percent year-over-year deliveries in December to 10,489 units. NIO's five-seat high-performance high-end smart electric SUV ES6 accounts for nearly half of total sales.

In the fourth quarter, NIO delivered more than 25,000 vehicles, breaking the previous record; for the whole of 2021, this number reached 91,429, doubling the previous year.

Last week, NIO shares surged 15 percent, their biggest one-day gain since March 2021. On December 31, China's Ministry of Finance announced a cut in subsidies for new energy vehicles, and NIO's stock price fell. On Monday, NIO recovered from its december 31 decline last year. However, the company has yet to return to a high of more than $43 per share last November.

Meanwhile, NIO launched the MID-size high-end smart electric sedan ET5 last month, which is expected to begin delivery in September 2022. In addition, NIO plans to start delivering its high-end smart electric sedan ET7 in March 2022.

NIO's rival, Nasdaq: XPEV; HKEX: 09868) closed down 6 cents to $50.27 per share on Monday.

Last week, the company reported a spike in December deliveries, up 181 percent year-over-year to 16,000 units. This figure is only up 2% compared to November, indicating a slowdown in month-on-month production growth. Xiaopeng Motors' P7 smart sports sedan accounted for about half of sales last month.

The announcement shows that the total shipments in the fourth quarter reached 41,751 units, an increase of 222% over the fourth quarter of 2020. Deliveries in 2021 were 98,155 units, up 263 percent.

Ideal Car (Nasdaq: LI; HKEX: 02015) closed at $32.34 per share, up 24 cents on the day. In December last year, Ideal delivered 14,087 Li ICs, up 130% year-on-year.

According to the report, NIO's total deliveries in the fourth quarter were 35,221 units, an increase of 144% year-on-year and a 40% increase over the third quarter. The total delivery volume in 2021 reached 90,491 units, and although there is only one model on the market, it is closely following the annual delivery volume of Weilai and Xiaopeng Motors.

Also in December, Ideal Auto officially began pushing OTA version 3.0.