Tesla Rivals BYD, Li Auto Report Record Deliveries; XPeng, Nio Also Strong

Tesla's competitors in China, including BYD and Li Auto, reported strong deliveries in August, with both companies achieving record numbers. Other electric vehicle companies, XPeng and Nio, also performed well.

On Friday, Chinese competitors to Tesla announced robust deliveries for August. EV behemoth BYD (BYDDF) and Li Auto (LI) disclosed record-breaking sales, while XPeng (XPEV) experienced its most successful month in over a year. Nio (NIO) deliveries were nearly at a record level.

Nio and XPeng stocks skyrocketed on Friday morning, while Li Auto and BYD experienced a modest increase.

These EV competitors, who are vying to outdo Tesla (TSLA), have introduced several new models in the past few months. An enhanced Tesla Model 3 was made available for purchase on Friday morning.

Despite the ongoing weakening of China's economy, overall EV sales in the country are predicted to increase in August.

Here are the sales results for August.

Li Auto delivered 34,914 vehicles, a 2.3% increase from July's previous record of 34,134 and a 664% increase compared to the same time last year. Each of its three hybrid SUVs sold over 10,000 units.

For Q3, Li Auto has projected deliveries of 100,000-103,000 vehicles. This indicates that it is now on track to meet the upper end of its delivery guidance.

Li, a manufacturer of hybrid-electric SUVs, targets the premium market. To maintain sales momentum, Li has started offering $1,370 insurance subsidies, as reported by CnEVPost.com on Aug. 30.

This is noteworthy as Li had previously refrained from participating in the price war, and because the company has stated that it is constrained by production. Capacity is expected to increase with the opening of a new plant in Beijing in October.

In August, Li began delivering the "Pro" trim of the L9, which comes standard with autonomous driving.

Li Auto shares rose 1.6% to 42.33 on the stock market today, trading above its 21-day moving average. Li Auto stock is on the IBD 50 list of top growth stocks.

Nio delivered 19,329 vehicles, a 5.5% decrease from July's record of 20,462 but an 81% increase compared to the same time last year. A brief plant shutdown for upgrades from late July to early August may have impacted production. Nio reported that orders exceeded 20,000.

The results for August, along with July deliveries, suggest that Nio is on track to exceed the upper end of its delivery target range of 55,000-57,000. Nio's Q3 delivery guidance on Tuesday disappointed some analysts.

In June, Nio entered an EV price war initiated by Tesla (TSLA).

Analysts anticipate that new models like the ES6, a completely revamped version of Nio's top-selling electric SUV, will boost deliveries in the second half of 2023.

Nio shares surged 7.1% on Friday to 11, rebounding from the 200-day line but still below the 50-day. Nio stock increased 1.6% for the week.

XPeng delivered 13,690 vehicles, the highest since June 2022 and a 43% increase compared to the same time last year. Sales rose 24.4% compared to July's 11,008 EVs, marking the seventh consecutive month of sequential gains.

The startup has projected Q3 deliveries of 39,000-41,000 electric vehicles. This indicates that it is now on track to meet its delivery guidance.

Deliveries of its new G6 crossover, a Model Y competitor, surged to 7,068. G6 deliveries began in July.

XPeng shares increased 5.2% to 18.7 on Friday, trimming intraday gains. XPEV stock rose 6.7% for the week.

BYD sold a record 274,386 vehicles in August, a nearly 5% increase from July's 262,161 and a 57% increase compared to the same time last year. Of the 173,977 passenger vehicles sold, the China EV and battery giant sold 145,627 all-electric BEVs and 128,459 PHEVs.

The balance has shifted toward BEVs in recent months, aided by the super-affordable Seagull.

BYD's sales are primarily in China, but exports are on the rise, jumping to 25,023 in August from 18,169 in July and 10,536 in June.

BYD has sold 1,792,184 NEVs so far this year, an 83% increase from January-August 2022.

The Tesla competitor aims to sell at least 3 million vehicles in 2023. This means it needs to average nearly 302,000 deliveries per month for the rest of the year.

BYD stock rose 1.9% to 32.07 on Friday, hitting resistance at the 50-day line. Shares surged 11.3% for the week, driven by a strong first-half earnings report.

From August 1 to August 27, retail sales of passenger new energy vehicles (NEVs) in China stood at 538,000 units, a 2% increase from the same period last month. This data comes from the China Passenger Car Association.

So far this year, retail NEV sales, which include hybrids, have reached 4.265 million units. This is a 35% increase year over year, according to CnEVPost.com.

For Nio and XPeng, new models have raised expectations for a stronger second half of 2023.

However, the latest data showed that China's factory activity declined for the fifth consecutive month in August.

And Tesla reignited the China EV price war last month with a new round of cuts.

Growth is slowing in the world's largest EV market.

China EV sales more than doubled in 2021 and 2022. They are expected to grow around 30% this year.


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