Nio (NYSE: NIO) shares have been on a tear recently, soaring move than 50% in the last three weeks. One reason for that is investor excitement over new models the Chinese electric vehicle (EV) maker has launched. But shares are moving lower today, down 1.8% as of 12:15 p.m. ET.
Today’s drop could just be from investors taking a break from the recent buying, as shares have just reached a level last seen in early April. But it also might be from some publicity competing China-based EV company XPeng received yesterday about its own new models coming. The Wall Street Journal highlighted XPeng’s plans to launch two new models next year in an article published yesterday.
That took some thunder away from Nio, which began selling its first sedan model in late March and also announced plans to begin production of a mid-size sedan and mid-to-large SUV later this year. Nio’s luxury ET7 sedan is off to a good start. The company sold more than 1,700 in May, comprising almost one quarter of its total monthly vehicle deliveries.
But more domestic competition looks to be closing in. In addition to the two new models XPeng is planning to launch next year, the company also said yesterday it will launch a new, advanced driver-assistance function in the next few months. It plans to equip its current flagship SUV model with that feature on its next-generation platform beginning in the third quarter.
XPeng also announced yesterday it has delivered its 200,000th vehicle. That comes just about one month after Nio marked that milestone itself. Investors are starting to realize that there is more than just one player in the large Chinese EV market and are giving Nio shares a pause today after a big run-up in recent weeks.