Li Auto, a leading EV maker in China, released its August delivery numbers, while Nio, XPeng, and Zeekr are expected to report their monthly figures on Sunday. BYD, a major player in the EV market and a rival to Tesla, will also announce its sales figures on Sunday or Monday.
BYD’s stock broke out on Friday, while other smaller Chinese EV companies have seen a decline in 2024.
The summer months have seen a boost in EV sales due to increased government subsidies and company incentives.
Li Auto reported a decline in August deliveries compared to July, with Nio and XPeng expected to have flat delivery numbers. Zeekr, on the other hand, is anticipated to show an improvement from its weak July performance.
BYD is projected to report a significant increase in sales from its record July numbers, potentially reaching 400,000 units.
Recent earnings reports from BYD and Li Auto showed mixed results, while XPeng and Zeekr reported their earnings in the previous week. Nio is scheduled to release its Q2 results on September 5.
Li Auto Deliveries
In August, Li Auto delivered 48,122 EVs, a 37.8% increase from the previous year but a 5.6% decrease from July’s record numbers.
The company primarily sells SUVs that are extended-range electric vehicles (EREVs). Its first battery electric vehicle (BEV), the Mega minivan, has not performed as well in the market.
The L6, Li’s lowest-priced SUV, continued to be a strong seller with over 20,000 units sold for the third consecutive month.
Li Auto’s Q2 earnings showed a 45% decline year-over-year, although revenue increased by 10% to $4.36 billion. The company’s growth has been slowing down.
Li Auto expects to deliver between 145,000-155,000 units in Q3, translating to 94,000-104,000 deliveries in August and September.
With August delivery numbers released, Li Auto is projected to deliver 45,878-55,878 units in September.
Li Auto’s stock dropped by 8.3% to 19.46, reaching a 52-week low of 17.44 on Wednesday.
BYD Sales
Weekly registration data from China indicates that BYD is likely to report another month of record sales, potentially reaching around 400,000 units. The company’s success can be attributed to its new and updated EV models, many of which feature advanced hybrid technology.
Additionally, BYD’s new assembly plant in Thailand started deliveries in August, marking the company’s first fully operational plant outside of China.
BYD reported selling a record 342,383 vehicles in July, with a notable increase in sales of PHEVs compared to BEVs.
BYD’s Q2 earnings showed a 32% rise in earnings per share to 43 cents, in line with expectations. However, sales growth fell slightly short of forecasts.
BYD introduced new models at the Changdu auto show, including a hatchback and minivan, leading to a 5.2% increase in the company’s stock price.
BYD is the only EV maker with a positive performance in 2024, with a 10.2% increase in stock value.
Nio Deliveries
Deutsche Bank predicts that Nio will deliver approximately 20,000 units in August, similar to last year’s numbers and July’s deliveries.
Nio is set to launch the Onvo L60, a competitor to Tesla’s Model Y, in September. Onvo represents Nio’s new mainstream brand.
Nio’s stock experienced fluctuations, ending the week with a 1% decline.
XPeng Deliveries
Deutsche Bank estimates that XPeng will deliver around 12,000 units in August.
In July, XPeng delivered 11,145 EVs.
XPeng recently introduced the Mona M03, a sedan that is more affordable than the Model 3. The EV maker received 50,000 orders for the new model within 72 hours.
The Mona M03, equipped with BYD Blade batteries, began deliveries on Friday.
XPeng’s stock surged by 14.8% for the week to 8.05, recovering from a previous low in August.
Zeekr Deliveries
Zeekr is expected to deliver approximately 18,500 EVs in August, marking a 50% increase from the previous year and an 18% increase from July.
In July, Zeekr delivered 15,655 vehicles, with a decline attributed to production line revamps.
Geely’s Zeekr unit unveiled the Zeekr 7X SUV on Friday, with deliveries scheduled to begin by the end of September.
Zeekr’s stock decreased by 4.8% for the week to 16.18, dropping below the 50-day line. The company went public at $21 per share in May.
Tesla Stock
Tesla’s stock experienced a 2.8% decline to 214.11 for the week but found support near the 200-day line. The stock saw a 3.8% increase on Friday.
Tesla is currently in a consolidation phase with a buy point of 271.
Tesla does not disclose monthly sales figures for China, but industry data is expected to provide insights in the coming weeks. Competition from Nio, XPeng, BYD, and other EV makers could pose challenges for Tesla in the future.
For stock market updates and more, follow Ed Carson on Threads at @edcarson1971 and Twitter at @IBD_ECarson.
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