What happened

Chinese electric vehicle (EV) makers' stocks rocketed higher yesterday, including that of XPeng (XPEV -0.24%). That came despite the company releasing its third-quarter results that missed analyst estimates on the top and bottom lines. The general trend higher among China's EV makers yesterday had more to do with the feeling that COVID-19 restrictions would be easing. Today, XPeng shares plunged more than 10% before paring those losses to a decline of 6.6% as of 1:35 p.m. EST.

So what

The impacts of those restrictions were seen again today when XPeng announced it only delivered 5,811 vehicles in November. While that drop of 63% compared to last year could be explained by COVID impacts, what was more difficult to understand today is why XPeng's competitors didn't have similar results

Nio and Li Auto both reported record monthly deliveries in November today. Nio's monthly deliveries jumped 30.3% year over year, while Li's new record was 11.5% higher than a year ago. XPeng claimed its monthly underperformance was due to "challenges brought by COVID-related restrictions and disruptions." The company said it expected a significant increase in December deliveries. 

XPeng G9 SUV.

Image source: XPeng.

Now what

The good news from XPeng was that its new flagship G9 SUV represented more than a quarter of the month's deliveries. The G9 only began shipping in late October, and the company believes it could become its best seller. 

Year to date, XPeng has still increased shipments 33% versus 2021. But after yesterday's 32% spike in price, XPeng investors took some profits after the company's disappointing November shipments today. Investors may not be willing to be net buyers of the stock again until the company proves that December will, in fact, show a significant rebound in shipments.