NIO Launches Onvo L60, XPEV to Sell Flying Car in 2026 & More

May 21, 2024

24 3 minutes read

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In a major development last week, the Biden administration raised the border tax on China-made electric vehicles (EVs) from the existing 25% to a whopping 100% in response to the undercutting of prices by China and to protect U.S. jobs. It has also raised tariffs significantly on Chinese batteries. While the U.S. government wants to boost domestic production capacities in the nation, China sees the move as part of the ongoing tough-on-China foreign policy.

On the news front, EV startup Canoo Inc. GOEV and electric truck and powertrain company Xos, Inc. XOS released their first-quarter 2024 results.While NIO Inc. NIO unveiled the first offering under its new low-cost Onvo brand, its peer XPeng Inc. XPEV made headlines with its plans to deliver its first flying car in 2026. Meanwhile, EV charging company Blink Charging Co. BLNK clinched a contract to provide Level 2 and DC fast chargers and related services in New York.

While GOEV, BLNK and NIO carry a Zacks Rank #2 (Buy) presently, XOS and XPEV carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Last Week’s Top Stories

Canoo incurred first-quarter 2024 adjusted loss of $1.13 a share, wider than the Zacks Consensus Estimate of 97 cents but narrower than the prior-year loss of $1.73. For the quarter under review, the firm incurred operating expenses (R&D and SG&A) of $62.6 million, down from $81.5 million in first-quarter 2023. Loss before interest, taxes, depreciation and amortization totaled $48.3 million in the quarter under review, narrower than $67.1 million incurred in the year-ago period. As of Mar 31, Canoo had cash and cash equivalents of $18.2 million. For 2024, GOEV projects revenues in the band of $50-$100 million.

Blink Charging secured a contract as one of New York’s official EV charging providers, aiming to electrify state and municipal fleets and public charging for residents and visitors. Blink will supply Level 2 and DC fast chargers, along with services like site assessment, installation, maintenance, and product training. The contract includes EV charging network services for managing EVs, integrating third-party systems for energy management, and other related technologies. This follows Blink’s record financial performance and the opening of a new manufacturing facility and global headquarters in Maryland, highlighting its commitment to advancing EV infrastructure.

NIO launched the Onvo L60 SUV, the first vehicle under its new lower-priced brand Onvo, aimed at competing with Tesla’s Model Y. Priced at 219,900 yuan ($30,476), the Onvo L60 is 12% cheaper than the Model Y and offers more space. Nio plans to begin deliveries in September. The Onvo brand, which includes a 900-volt fast-charging system and low energy consumption, targets family car buyers and aims to challenge Toyota’s RAV4. Nio hopes to expand Onvo internationally despite an ongoing EU anti-subsidy probe into Chinese EV imports.

Xos incurred a first-quarter 2024 loss of $1.80 per share, narrower than the Zacks Consensus Estimate of a loss of $2.19 and the year-ago loss of $4.32 per share. Revenues of $13.16 rose from $4.7 million generated in the first quarter of 2023. The company achieved a gross profit of $2.8 million in the quarter under review against a gross loss of $877,000 in the year-ago quarter. During the quarter, Xos completed the acquisition of ElectraMeccanica, which added roughly $50.2 million to Xos’ cash position. For 2024, Xos envisions revenues between $66.7 million and $100.4 million. Deliveries are expected in the band of 400-600 units. Adjusted operating loss is forecast in the range of $43.7-$48.7 million.

XPeng plans to deliver its flying car to customers by 2026 through its affiliate, XPeng AeroHT. Last year, the company introduced the Land Aircraft Carrier, a large truck housing a detachable, two-seater passenger drone. The flying car has received certification from the Chinese aviation regulator. Brian Gu, co-president of XPeng, announced that pre-orders will start this year, with deliveries expected in 2026, slightly later than the initially targeted late 2025 date. This initiative is part of XPeng’s broader strategy to expand into new areas of electric mobility, including robotics and flying cars. XPeng’s long-term vision aims to lead in the emerging field of aerial transportation, pushing the boundaries of traditional electric vehicles.

Price Performance

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

Zacks Investment Research

Image Source: Zacks Investment Research

What’s Next in the EV Space?

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

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