Finance
Tesla archrival breaks out with big Chinese EV sales; Li Auto deliveries fall
Chinese EV maker Li Auto (LI) reported August deliveries, with Nio (NIO), XPeng (XPEV), and Zeekr (ZK) will announce monthly figures on Sunday. EV giant and Tesla (TSLA) archrival BYD (BYDDF) reports sales on Sunday or Monday.
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BYD shares broke out of their base on Friday, while smaller Chinese EV makers fell sharply in 2024.
Increased government subsidies and business incentives have boosted electric vehicle sales over the summer.
Li Auto reported that deliveries in August fell from record levels in July. Nio and XPeng are expected to report deliveries in August that are about flat compared to July. Zeekr should see a recovery after a weak July.
BYD is expected to report a big increase in sales from a record high in July, possibly reaching 400,000.
BYD and Li Auto reported mixed second-quarter results on Wednesday, after XPeng and Zeekr reported the week before. Nio will report second-quarter results on September 5.
Li Auto Deliveries
Li Auto delivered 48,122 electric vehicles in August, up 37.8% from a year earlier, but down 5.6% from a record 51,000 in July.
Li Auto primarily sells SUVs that are extended-range electric vehicles (EREVs), essentially a form of PHEVs. His first BEV, the premium Mega minivan, did not sell well.
Li’s cheapest SUV, the L6, sold more than 20,000 units for the third month in a row.
On Wednesday, Li Auto reported that second-quarter profits fell 45% from a year earlier, beating opinions. But revenue rose 10% to $4.36 billion, which is not in line with expectations and slows growth again.
Li Auto led third quarter deliveries of 145,000-155,000, which equates to August and September deliveries of 94,000-104,000.
With August deliveries in hand, September deliveries are expected to be 45,878-55,878.
Li Auto shares tumbled 8.3% to 19.46, hitting a 52-week low of 17.44 on Wednesday.
BYD Sales
Weekly registration data in China suggests BYD will report another month of record sales, perhaps reaching around 400,000. Credit new and updated electric vehicles, many with advanced new hybrid technology.
Also, BYD’s new Thai factory, the first fully assembly plant outside China, began deliveries in August.
BYD sold a record 342,383 vehicles in July, up 30.6% from a year earlier, but just 0.2% above June’s 341,658. Of the 340,799 passenger cars, BYD sold 210,799 PHEVs, an increase of 66.9% from a year earlier and 8.1% from June. BEV sales were only 130,000, down 3.55% from a year earlier and 10.5% from June.
As of July, BYD’s three-month revenue reached 1.016 million, exceeding the one million level for the first time.
On Wednesday, BYD reported that second-quarter profit rose 32% to 43 cents per share, in line with expectations. Revenue rose 26% to $24.2 billion, but missed forecasts.
BYD launched a few more models at the Changdu Auto Show on Friday, including a hatchback and a new minivan.
BYD shares rose 5.2% to 30.50 last week, including Friday’s 4.3% rally. The stock crossed the 50-day mark and a cup-with-handle buy point of 30.
BYD is up 10.2% so far in 2024, the only EV manufacturer to be positive for the year.
Nio deliveries
Deutsche Bank expects Nio deliveries of about 20,000 to remain roughly unchanged from a year earlier and July’s 20,498 electric vehicles
In September, Nio will start delivering the Onvo L60, a rival to the Model Y. Onvo is Nio’s new mainstream brand.
Nio shares fell 1% to 4.04 this week amid some big daily moves.
XPeng Deliveries
XPeng deliveries will be around 12,000, Deutsche Bank estimates.
XPeng delivered 11,145 EVs in July.
On August 27, XPeng formally launched its Mona Mo3, a sedan that is much cheaper than the Model 3. Mona is XPeng’s new affordable sub-brand. The EV maker claimed 50,000 orders in the first 72 hours.
The Mona M03, which uses BYD Blade batteries, was delivered on Friday.
XPeng shares rose 14.8% to 8.05 this week, after hitting a 52-week low earlier in August.
Zeekr Deliveries
Deliveries of Zeekr EVs should be around 18,500, up 50% from a year earlier and 18% from July.
Zeekr delivered 15,655 vehicles in July, a decline of 22.1% from June, when it began a major production line overhaul in late July.
Auto giant Geely’s unit on Friday debuted the Zeekr 7X SUV, with deliveries set to begin in late September.
Shares of Zeekr fell 4.8% this week to 16.18, moving lower from the 50-day line on Friday. Zeekr came public in May at a price of 21 per share and reached a record of 32.24 on May 14. ZK stock hit a record low of 13 on August 12.
Tesla shares
Tesla shares fell 2.8% this week to 214.11, undershooting the 50-day line but finding support around the 200-day line. Shares rose 3.8% on Friday.
TSLA stock is in consolidation with a 271 buy point.
Tesla does not report monthly sales in China, but industry data will provide figures in the coming weeks. Weekly registration data points to a solid August for the US EV giant, but new rivals from Nio, XPeng, BYD and more could pose a challenge in the coming months.
Follow Ed Carson on Threads at @edcarson1971 and X/Twitter on @IBD_ECarson for stock market updates and more.
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