Xpeng (XPEV) reported October deliveries more than tripled vs. a year earlier. Nio (NIO) reported plunging sales on a production line shift while Li Auto (LI) sales doubled. Xpeng stock and Li Auto stock are near buy points, while Nio stock is starting to struggle again.
China EV and battery giant BYD Co. (BYDDF) will likely release October sales later next week. Tesla China sales for October, including exports, will likely be released the following week.
Overall China EV sales nearly tripled in the third quarter despite the global semiconductor shortage, according to Fitch Ratings.
The electric-car startups are challenging Tesla (TSLA) on home turf in China and, more newly, in Europe — two of the fastest-growing EV markets.
How Nio, Li Auto and Xpeng are handling supply-chain issues now and their forecasts for production will be key.
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China EV Sales
Early Monday in China, Xpeng reported October deliveries surged 233% vs. a year earlier to 10,138 EVs. Xpeng deliveries topped for a second straight month, dipping slightly from September’s 10,412. October sales included 6,044 P7 sedans, up 187%. Xpeng also delivered 3,657 G3 and G3i smart SUVs. It delivered 437 P5 sedans. The Lidar-equipped smaller sedan was launched in September.
Xpeng was the first to sell in Norway with its G3 SUV. It’s just started selling its flagship P7 sedan in that key EV market. On Oct. 24, Xpeng showcased a flying car, which it plans to mass produce by 2024.
Nio deliveries fell 27.5% vs. a year earlier to 3,667, plunging from September’s 10,628. A production line overhaul limited output to about 10 days last month. Deliveries included 3,667 ES8 and 2,528 ES6 SUVs and just 921 EC6 crossovers.
Nio, founded in November 2014, will release its high-end ET7 sedan next year. In September, Nio began selling the ES8 SUV in Norway, its first overseas market.
Li Auto delivered 7,649 vehicles in October, up 107% vs. a year earlier. That’s also up slightly from 7,094 vehicles in September, as chip shortages hit the automaker. Unlike its peers, Li One sells a single vehicle, the hybrid-electric Li One SUV with a small gas engine as a range extender. But it has promised more new EVs are coming, and also eyes an entry into Europe.
Later this week, BYD (BYDDF) is likely to report October sales as well. The Chinese EV and battery giant’s sales are proving especially robust. In September, BYD’s EV and plug-in hybrid sales rose by roughly 10,000 for the fourth straight month, topping 70,000.
BYD also has begun selling EVs in Norway, starting with the Tang SUV. BYD, with its booming production, likely has far more scope to expand shipments to Europe than its startup rivals.
In all of Q3, BYD’s sales leapt 294% from a year ago. Despite booming EV sales, the Warren Buffett-backed company posted a 27.5% drop in net profits for the third quarter Thursday.
Xpeng, Nio and Li Auto will likely report Q3 results in the coming weeks.
Industry data will likely reveal Tesla sales the following week, with the bulk of October production likely going to Europe.
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Nio Stock, Chinese EV Stocks
Shares of Nio fell almost 4% in early Monday’s stock market trading. Nio stock tumbled back from its 200-day line last week.
Xpeng stock climbed 5% in early trading to almost 48.78, retaking a 48.08 bottoming-base buy point, according to MarketSmith chart analysis. Li Auto stock dipped nearly 3% as it works on a handle.
BYD stock, rose nearly 3% early Monday. It tumbled late last week from record highs on its profit drop. Tesla rose 2% after surging last week to all-time levels.
Recently, China’s regulators cracked down on tech-driven companies, imposing new rules on data gathering and management by EV companies. Increasingly “smart” electric vehicles will generate lots of data.
Chinese EV makers are challenging Tesla on home turf with some success and, increasingly, in Europe. In September, Tesla CEO Elon Musk called his China EV rivals “the most competitive in the world.”
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