Chinese electric vehicle stocks NIO Limited (NYSE: NIO) and XPeng Inc. (NYSE: XPEV) redeemed themselves credibly in March after a softer February, reporting record first-quarter deliveries. The Nio, XPeng Analyst: BofA Securities analyst Ming Hsun Lee maintained a Buy rating on Nio with a $63 price target. The analyst also maintained a Buy rating on XPeng with a $53.10 price target. Nio Poised For Market Share Gains: Nio’s March deliveries represented a 373% year-over-year increase and a 30% month-over-month climb, Hsun Lee said in a note. Quarterly deliveries of 20,060 units represented a 423% year-over-year increase and 16% quarter-over-quarter growth, the analyst said. This was 3% ahead of both Nio’s revised guidance issued last week and BofA’s estimate. BofA’s bullish stance on Nio is predicated on rising EV penetration and the company’s battery swap station expansion, which will likely help the company gain share in China, Hsun Lee said. Related Link: Nio, XPeng File For Hong Kong Listings: Report XPeng to Leverage Advanced AD Tech: XPeng’s March deliveries of 5,102 suggested 384% year-over-year growth and a 130% increase from the previous month, Hsun Lee said. Quarterly deliveries of 13,340 were 7% ahead of BofA’s forecast and bettered the company’s guidance for 13,000 units, the analyst said. The company delivered its P7 Wing edition in March and expects to deliver lithium iron phosphate battery versions of G3 and P7 in April and May, respectively, according to BofA. The company also plans to unveil a third model, an A-class sedan, in the second quarter, with deliveries beginning in the fourth quarter, he said. The positive results from XPeng’s navigation-assisted autonomous driving expedition from Guangzhou to Beijing that took place between March 19 and 26 prove its NGP capability, Hsun Lee said. XPeng will likely see volume sales growth thanks to its continuous advanced AD technology and product competitiveness, the analyst said. See also: How to Buy Nio Stock Wedbush Sees Positive Readthrough For Tesla: The better-than-expected deliveries numbers from Nio and Xpeng are a very positive indicator of the China EV market growth trajectory for the rest of the year, Wedbush analyst Daniel Ives said in a note. The analyst said he expects more good news out of China from Tesla, Inc. (NASDAQ: TSLA) over the next 24 hours. The EV giant may have had a strong March in China, with Model 3 sales exceeding Street expectations, he said. Chip shortages, the analyst said, are near-term speed bumps that will be quickly forgotten given the skyrocketing demand trajectory ahead in the $5-trillion EV market. “We continue to believe EV stocks move 30%-40% higher the rest of the year as the Street further digests this transformational growth on the horizon,” Ives said. NIO, XPEV Price Action: At last check, Nio shares were gaining 2.15% to $39.82. XPeng shares were up 1.45% at $37.04. Related Link: Xpeng’s Autonomous P7 Vehicle Fleet Drives 3,600 Kms, Sets Record Photo courtesy of XPeng. Latest Ratings for NIO DateFirmActionFromTo Mar 2021MizuhoInitiates Coverage OnBuy Mar 2021JefferiesMaintainsHold Jan 2021Nomura InstinetInitiates Coverage OnBuy View More Analyst Ratings for NIO View the Latest Analyst Ratings See more from BenzingaClick here for options trades from BenzingaNio Q1, March Deliveries At Record, As EV Maker Stands Up To Industry-Wide ChallengesXPeng Scores Record Deliveries In Q1 Despite Seasonal Softness, Chip Shortage; EV Maker’s 3rd Model Coming In Q2© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.