Chinese EV giant BYD (BYDDF) is on deck to report November sales in coming days after a sizzling streak so far this year. China EV startups Li Auto (LI) and Nio (NIO) on Thursday reported record monthly deliveries, while XPeng (XPEV) continued to lag.
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For the startups, deliveries of electric vehicles rebounded in November vs. October, as headwinds eased and new models ramped up. Nio and XPeng also predicted a stronger December.
The November rebound is a positive sign for China EV sales. Unlike BYD, the startups had all seen sales fall in October vs. September amid Covid-19 lockdowns and supply disruptions.
But China EV stocks cooled Thursday after surging Tuesday and Wednesday. Bloomberg said investors see a bumpy reopening as China starts to lift Covid-19 lockdowns after mass protests. The curbs have weighed on automakers and auto suppliers in the world’s largest EV market.
The Chinese EV makers are competing with Tesla (TSLA) on home turf. China is the one of world’s largest and fastest-growing EV markets.
BYD Sales
BYD sales for November will likely come Friday or Saturday. In October, BYD sold a milestone 103,157 all-electric EVs, up 150% from a year ago. It sold 217,816 all-electric and hybrid-electric vehicles, combined, in October, up 142% from a year earlier.
In the first nine months of 2022, BYD’s sales of all-electric and plug-in hybrid vehicles vaulted 250% to 1.2 million units.
Exports remain a small share of BYD’s total sales but are rising rapidly. The company has a big international expansion underway. On Thursday, it announced a Mexico entry in 2023.
On Dec. 9, BYD is preparing to launch the Frigate, a hybrid SUV. That will add to a slew of new EV launches. The BYD Seal, a Tesla Model 3 rival, launched in late August.
Shares, which trade over the counter in the U.S., shed 2.4% Thursday. On Wednesday, BYD stock popped 9.9% to regain its 50-day line for the first time since early August.
Li Auto Sales
Li Auto sold 15,034 EVs in November, up 11.5% vs. a year ago and up 49.5% vs. October. The November tally set a record for monthly EV sales.
The startup did not break down sales by model. But the new L9 was the “sales champion of full-size SUVs in China,” its sales release Thursday said. Li began L9 SUV deliveries on Aug. 30 and L8 deliveries on Nov. 10. It has phased out its original One model.
On Dec. 9, Li Auto will report Q3 earnings before the market open. It’s also expected to give a Q4 delivery estimate at that time.
Li Auto stock fell 3.2% Thursday. Shares surged 18.7% to 22 Wednesday, moving back above a long-sliding 50-day line. LI stock soared 8.7% Tuesday.
Nio Sales
Nio sold 14,178 EVs in November, up 30% vs. a year ago and up 41% vs. October. Year to date, Nio has sold 106,671 EVs, up 31.8% vs. the year-ago period.
The November deliveries set a monthly sales record. They consisted of 8,003 premium electric SUVs and 6,175 premium electric sedans. The tally included 4,897 ES7 SUVs; 3,207 ET7 sedans; and 2,968 ET5s, all new models this year.
Nio’s November EV deliveries came in ahead of Deutsche Bank’s Yu prediction for 13,500. And the startup said Thursday that EV production and deliveries will accelerate in December.
Nio guided record Q4 deliveries on Nov. 10, while posting a worse-than-feared Q3 loss.
Nio stock dropped 5.4% on the stock market today. Shares shot up 21.7% on Wednesday to 12.78, crossing above the 50-day line. Shares of Nio and its China EV peers remain below the 200-day line after sliding in the past year.
XPeng Sales
XPeng sold 5,811 EVs in November, down nearly 63% vs. a year earlier, but up 14% from October. The company cited “challenges brought by COVID-related restrictions and disruptions.” Year to date, XPeng has sold 109,465 EVs, a 33% increase vs. the year-ago period.
November deliveries included 1,546 units of the flagship new G9 SUVs, its sales release said.
Xpeng expects December deliveries to “significantly increase” as the G9 production ramps up after challenges in November.
Early Wednesday, XPeng reported a wider-than-expected Q3 loss of 39 cents per ADR share. Revenue rose 19.3% to RMB 6.82 billion, or $959.2 million.
It forecast Q4 deliveries of 20,000-21,000 EVs, down roughly 50%-52% vs. a year earlier and down significantly from Q3’s 29,570. With October-November deliveries of 10,912 EVs, that implies XPeng deliveries will rebound to 9,000-10,000 in December.
Deutsche Bank’s Yu had forecast XPeng would deliver 19,500 EVs in Q4. New models, such as the G9 SUV, are ramping up slowly, while some older models are being phased out, he said.
XPeng stock tumbled 7.8% on Thursday. Shares skyrocketed 47.3% to 10.81 Wednesday, vaulting above the 50-day line. XPEV stock popped 6.5% on Tuesday.
On Wednesday, the southern Chinese city of Guangzhou, where XPeng is based, relaxed Covid-19 restrictions in various districts.
Tesla Stock
Tesla does not release China-only sales, but weekly registration data suggest a strong month for local China sales. A late October price cut and various other incentives, along with Tesla’s big production increase and the soon-to-expire China EV subsidies, are likely contributing factors.
Tesla stock was unchanged Thursday. Shares leapt 7.7% on Wednesday to 194.70, still below the 50- and 200-day lines but back above the 21-day. On Tuesday, TSLA stock fell 1.1%.
China EV Sales
Retail NEV sales are expected to reach 600,000 in November, the China Passenger Car Association estimates. That would be up 58.5% vs. a year ago and also up about 8% from October.
“New energy vehicles,” or NEVs, include all-electric, hybrid-electric and fuel-cell vehicles.
“Historically, car sales in China have picked up strongly in the year-end months,” Deutsche Bank analyst Edison Yu wrote in a Nov. 25 note.
China’s electric-car market stayed red-hot in the first 10 months of 2022, despite headwinds.
Over that period, NEV sales soared 110%, while the broader passenger car market grew just 14%, according to data from China Association of Automobile Manufacturers. In October alone, China’s all-electric sales jumped 70% to 508,000.
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