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EV Roundup: Tesla's (TSLA) Stock Split Plans & Solid Q1 Sales Steal the Show

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Last week’s highlight was Tesla’s (TSLA - Free Report) planned stock split. Per the latest SEC filing, Tesla would request shareholder approval at the upcoming annual meeting “for an increase in the number of authorized shares of common stock ... in order to enable a stock split of the Company’s common stock in the form of a stock dividend.”

Tesla has been lighter on details in the latest SEC filing and hasn’t announced the split ratio yet. Although a stock split would not fundamentally alter anything about the company, shares post stock split become accessible to a larger number of small-budget investors who are currently balking at the four-figure sticker price. Also, it would grant employees a higher degree of flexibility within stock-based compensation.

In another pleasant update from the electric vehicle (EV) behemoth, Tesla registered record deliveries for first-quarter 2022 despite the ongoing supply chain woes and suspension of operations in the Shanghai gigafactory amid the rising COVID-19 infections in China.

Other China-based EV manufacturers including NIO Inc. (NIO - Free Report) , XPeng Inc. (XPEV - Free Report) and Li Auto (LI - Free Report) also posted impressive delivery numbers. U.S. auto giant General Motors (GM - Free Report) also grabbed headlines as its Hummer EV reservations topped 65,000, surpassing expectations.

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Tesla announced that it is planning a new stock split, subject to shareholder approval. This would be the company’s second stock split in less than two years. Shares have been on a massive run since then, with the electric vehicle (EV) king joining the elite $1-trillion club in October 2021. Taking this trillion-dollar market cap company — currently trading near $1,100 — to a more digestible nominal figure per share would open the doors for retail investors who are a little tighter on the budget to own the stock. The split ratio will be announced at the upcoming annual meeting.

In a separate update, Tesla unveiled the production and deliveries data for the first quarter of 2022. Even amid the supply chain snafus, the EV king managed to deliver 310,048 vehicles (295,324 Model 3/Y and 14,724 Model S/X), up 67.7% and 0.5% on a year-over-year and sequential basis, respectively. Production totaled 305,407 units for first-quarter 2021 (291,189 Model 3/Y and 14,218 Model S/X)

Tesla currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

General Motors reported that it has received more than 65,000 reservations for its electric GMC Hummer pickups and SUVs. Per management, the figure achieved is higher than expected. The automaker aims to bolster production to meet the growing demand. The GMC Hummer EV is a new all-electric version of the popular gas guzzler of 2010 and was launched in the fall of 2020 as part of GM’s Everybody In electrification strategy. The Hummer EV pickup is a flagship vehicle for General Motors as it is the first to include next-generation battery cells and a platform known as Ultium.

In late December 2021, the first deliveries of the Hummer EV pickup rolled out for reservation holders and GMC delivered just one electric Hummer last year. At that time, GMC received more than 60,000 Hummer EV reservations and just less than two months later, it got an additional 5,000 reservations. The percentage of reservations converted into orders stands at 95%, which substantially exceeds expectations. The resounding demand surge is a testimony to the raging popularity that the vehicle promises to bring forth.

NIO commenced the deliveries of its new luxury sedan ET7 — which is the firm’s fourth vehicle offering. ET7's drag coefficient has improved to 0.208, registering an improvement in the EV's range to 550 km with the standard 75-kWh battery pack. With the 150-kWh pack, the EV will offer a range in excess of 1,000 km. In fact, NIO plans to introduce three new products based on the NIO Technology Platform 2.0 in 2022. Its fifth product offering, the ET5, draws a lot of its interior design from ET7. The delivery of ET5 is expected to commence in September 2022. While NIO has not yet revealed its sixth offering, there is indeed a lot of excitement surrounding its new models.

NIO released delivery updates for the month of March and first-quarter 2022. The company delivered 9,985 vehicles in March, up 37.6% year over year. The deliveries in March comprised 163 ET7s, 1,726 ES8s, 3,032 EC6s and 5,064 ES6s. For the three months ended March 2022, NIO delivered 25,768 vehicles, up 28.5% year on year.

XPeng announced delivery data for March and first-quarter 2022. The company delivered 15,414 Smart EVs in March, representing a whopping 202% surge year over year. The deliveries also depict a 148% jump from February levels. March deliveries comprised more than 9,000 P7 smart sport sedans, 4,398 P5 smart family sedans, and 1,833 G3 and G3i smart compact SUVs.

For the first quarter of 2022, XPEV sold 34,561 vehicles (19,427 P7s, 10,486 P5s and 4,648 G3 and G3i SUVs), representing a 159% year-over-year jump. As of Mar 31, 2022, XPeng’s cumulative deliveries summed 172,514 vehicles.

Li Auto also released delivery updates for March and the first quarter of 2022. The company delivered 11,034 Li ONEs in March, representing a surge of 125.2% year over year. First-quarter deliveries totaled 31,716, jumping 152.1% on a year-over-year basis. The cumulative deliveries of Li ONE totaled 155,804 since the vehicle rolled out in the market in 2019.

As the competition heats up in China’s EV market, Li Auto is geared to release its next vehicle offering. LI stated that its new SUV — the L9 model — would be unveiled on Apr 16, 2022. The L9 model price is expected in the band of 450,000-500,000 yuan, depending on different configurations. This makes it a more expensive option than the company’s flagship Li ONE, which has a base price of 338,000 yuan.

Price Performance

The following table shows the price movement of some of the major EV players over the past week and six-month period.

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What’s Next in the Space?

Stay tuned for announcements of the upcoming EV models and any important updates from the red-hot industry.

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