Zacks Analyst Blog Highlights Stellantis, Mazda Motor, NIO, Li and XPeng

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Chicago, IL – June 9, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Stellantis NV STLA, Mazda Motor Corp. MZDAY, NIO Inc. NIO, Li Auto LI and XPeng Inc. XPEV.

Here are highlights from Wednesday’s analyst blog:

Electric vehicle roundup: pacts on lithium access, more carbon-neutral proposals

The electric vehicle (EV) revolution is accelerating, with companies working hard to establish a firm foothold in this space. Traditional automakers are stepping up their investments in electric mobility and setting ambitious goals to electrify their fleets. Last week, Stellantis SA signed an agreement with a producer of lithium resources to source the metal for its green cars. Meanwhile, Mazda Motor Corp. promised to make all of its factories carbon neutral by 2035. China-based electric vehicle players NIO inc., Li-Auto and XPeng Inc. have posted their vehicle delivery numbers for the month of May.

Highlights from last week’s news

1. Stellantide entered into an agreement with Controlled Thermal Resources Ltd. (“CTR”) under which the latter would supply battery-grade lithium hydroxide for use in Stellantis’ North American production of electric vehicles. CTR’s Hell’s Kitchen project in California’s Imperial County will obtain lithium from geothermal brines using renewable energy and steam to produce battery-grade lithium products.

Stellantis will purchase up to 25,000 metric tons per year of lithium hydroxide from CTR over a 10-year period pursuant to the agreement. At the end of 2021, Stellantis announced a similar agreement to support vehicle production in Europe.

In line with the Dare Forward strategy, Stellantis aims to increase its planned battery capacity from 140 gigawatt hours (GWh) to nearly 400 GWh and expand its hydrogen fuel cell technology to large pickup trucks in 2024. The Dare Forward 2030 promises to make the company a champion player in the field of net-zero emission vehicles by driving innovation and employee engagement.

2. Mazda announced its intention to make all its factories around the world carbon neutral by 2035. This plan is part of its broader goal to make the supply chain carbon neutral by 2050. Given its commitments When it comes to carbon neutrality, this Japan-based automaker has a long way to go. Mazda currently sells only one compliance-level electric vehicle and plans to continue selling combustion vehicles over the next decade.

To tackle carbon emissions at its factories, Mazda is focusing on three key areas, namely energy conservation, switching to renewable energy and introducing carbon-neutral fuels for internal transportation. Energy conservation during the manufacturing process will include the reduction of thermal energy.

MZDAY plans to switch to low-carbon power generation at its factories and sourcing power from renewable energy providers. The company will work on its research into carbon-neutral biofuels for use in internal transportation. These measures will first be implemented in Mazda’s Japanese factories before other countries.

3. NIO released delivery updates for May. The company delivered 7,024 vehicles last month, compared to 6,711 units sold in May 2021. Deliveries in March included 1,707 ET7s, 746 ES8s, 1,635 EC6s and 2,936 ES6s. Cumulative deliveries as of May 31, 2022 totaled 204,936 vehicles.

NIO’s vehicle production and sales were severely impacted in March and April 2022 due to the resurgence of COVID-19 outbreaks and the supply chain crisis. But shipments appear to be gradually improving, with May sales up 38.4% from the previous month. NIO remains focused on accelerating deliveries this month. At the end of May, the cumulative mileage of its fleet of electric vehicles was more than 5 billion kilometers.

4. XPeng announced that it delivered 10,125 smart electric vehicles in March, representing a 78% year-on-year increase. March deliveries included more than 4,224 P7 intelligent sports sedans, 3,686 P5 intelligent family sedans and 2,215 G3 and G3i intelligent compact SUVs. As of May 31, 2022, XPeng’s year-to-date deliveries were 53,688 vehicles, up 122% year-on-year.

As China eased COVID-induced restrictions, XPeng resumed double-shift production at its Zhaoqing plant in mid-May and is actively seeking to accelerate delivery from its strong backlog. XPEV plans to release ACC-L and LCC-L via over-the-air updates soon. As of the end of April, XPeng operated 954 charging stations, including 774 boost stations and 180 destination charging stations across China.

5. Li-Auto also released delivery updates for May. The company shipped 11,496 Li ONEs last month, representing a 165.9% year-on-year increase. First-quarter shipments totaled 31,716, jumping 152.1% year-over-year. Li ONE’s cumulative deliveries have hit 171,467 since the vehicle’s market launch in 2019. As of May 31, Li Auto had 233 retail stores in 108 cities and 293 service centers in 214 cities.

Li Auto informed that although its parts suppliers in the Yangtze River Delta region have resumed production, they have not yet fully recovered and Li Auto may therefore encounter short-term challenges amid a chain issue. supply. As a result, the company’s Changzhou manufacturing base is also operating at lower than normal levels, which will likely lead to delivery delays.

What’s next in space?

Stay tuned for upcoming electric vehicle model announcements and all important updates from the boiling industry. Investors are also awaiting NIO’s first quarter 2022 results, which are expected to be released tomorrow.

NIO currently carries a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Mazda Motor Corporation (MZDAY): Free Stock Analysis Report

NIO Inc. (NIO): Free Stock Analysis Report

Li Auto Inc. Sponsored ADR (LI): Free Stock Analysis Report

XPeng Inc. Sponsored ADR (XPEV): Free Stock Analysis Report

Stellantis NV (STLA): Free Stock Analysis Report

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