EV sales in China: Nio Stock, Li Auto, Xpeng Rise; BYD sales top 100K units again

EV sales in China: Nio Stock, Li Auto, Xpeng Rise;  BYD sales top 100K units again

Chinese EV and battery giant BYDBYDDF) reported early Thursday that May sales topped 100,000 units for the third straight month. NiozNIOxpengXPEV) and Li AutoLI) all reported May EV sales on Wednesday, after the Covid lockdowns in China hit EV startups in April. Nio stocks and other Chinese EV makers closed higher in premarket action on Thursday, amid new EV subsidies and an end to lockdowns.


According to the China Passenger Car Association, passenger car sales in China are expected to fall 19% in May from last year, after falling 35% in April. However, local reports point to government subsidies to boost car sales in China in the second half of the year.

For example, the report says that the Shanghai municipal government will cut some taxes on passenger car purchases this year and increase the quota of passenger car license plates by 40,000. People who buy pure EVs will also receive a subsidy of 10,000 yuan ($1,503).

In Shenzhen, the high-tech hub in southern China’s Guangdong province, buyers of qualified new energy vehicles that they register in the city can receive a subsidy of up to 10,000 yuan per vehicle.

The Chinese government will boost the sale of affordable EVs and hybrids in rural areas. Local media have reported that a rural grant is likely, although Tuesday’s official announcement made no mention. A push in the countryside would help BYD, which has several cheap to moderately priced EVs and hybrids, but not Nio, Xpeng and Li Auto.

TeslaTSLA) Production and sales in China are likely to recover in May after the factory in Shanghai was shut down from March 28 to April 18. But Tesla Shanghai’s production is still not at full capacity. Investors will receive production and delivery details from Tesla China in a week or two.

Shares of Tesla rose 1% to 748.39 on Thursday. Shares are well below key levels.

BYD EV Sales

Warren Buffett-backed BYD reported 114,943 units sold in May. That was 250% more than the 32,800 units sold a year ago, and more than 8% above sales of 106,042 vehicles in April. (April sales were 313% more than a year earlier.) Byd cut production of internal combustion engine vehicles in March to focus on battery electric vehicles (BEVs) and plug-in hybrids (PHEVs).

The auto giant’s internal chip and battery business protected it from supply chain problems. Last month, BYD launched pre-orders for the Seal EV, a competitor to Tesla Model 3. The Seal will be delivered in the coming months.

According to local media, BYD is ready to buy six lithium mines in Africa. That would provide enough lithium to meet battery needs for ten years. BYD already has some investments in lithium business.

BYDDF shares were unchanged in early action Thursday. Shares had fallen to $35.74 on Wednesday. The stock is in a deep cup base with a buy point of 41.34. BYD shares are still in the range of an early entry of 34.60.

Nio EV Sales

Nio delivered 7,024 vehicles in May, up 38% from April and nearly 5% from a year earlier. In April, sales fell by almost 50% to 5,074, a 29% decrease from April 2021.

The company will open Nio stores in its largest market, Shanghai, and deliveries will begin there on June 2.

Nio will report Q1 results on June 9. Earlier in May, Nio issued weak revenue and EV delivery guidance.

NIO shares added 0.8% to 17.68 in the stock market today. On Wednesday, shares were up 7.1% in early trading, but gains narrowed to 1.2% to $17.59, just below its 50-day moving average, according to MarketSmith chart analysis.

Xpeng EV Sales

Xpeng delivered 10,125 vehicles in May. That was 12.5% ​​more than in April and 78% more than in May 2021. The electric car manufacturer delivered 9.02 vehicles in April, 42% less than in March.

On May 23, Xpeng issued a lackluster revenue and EV delivery guidance after both losses and revenue increased in the first quarter amid supply disruptions. Xpeng then said it expected to ship 31,000-34,000 EVs in the second quarter, up 78%-95% year over year, but less than deliveries of 34,561 EVs in the first quarter.

XPEV shares climbed 0.7% in early trading. On Wednesday, Xpeng closed 2.4% to $22.93. The shares are still below the 50-day mark. XPEV shares are down more than 50% since hitting a high of 56.45 on December 1, 2021, amid a general decline in EV stocks.

Tesla Rebounds as China EV Rival Flashes Buy Signal

Li Auto EV Sales

Li Auto shipped 11,496 Li One SUVs in May, up 176% from April’s 166% year-on-year. The Li One is a hybrid, with a small gas engine as a range extender. In April, deliveries of Li One fell 62% to 4,167 from 11,034 in March and fell 25% below a year earlier.

Li forecast last month it would deliver 21,000-24,000 vehicles for the second quarter, up 19.5% to 36.6% from the second quarter of 2021. But the May total suggests Li will easily back that forecast. surpass.

Shares were up 1.6% to $25.46 on Wednesday.

LI shares fell 1.4% early Thursday, after rallying from 3.3% on Tuesday to 25.07. A five-day advance has lifted the stock back firmly above their 50-day moving average.

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia


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