Li Auto (LI) again outsold Nio (NIO) and XPeng (XPEV) in China EV sales last month. But all three Chinese EV startups on Wednesday delivered the hoped-for rebound in February after a seasonally weak January. LI stock jumped after the market open, while Nio stock fell.
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Recent Tesla price cuts in China have led to tit-for-tat cuts from a host of domestic players, including EV startups and, most recently, the EV giant BYD.
Li Auto EV Sales
Li sold 16,620 EVs in February, up 97.5% vs. a year ago and up 9.8% from January. The startup sold 15,141 vehicles in January, down from 21,233 in December.
In the year-ago February, China’s EV makers faced several headwinds that weighed on sales, including battery and chip shortfalls.
Li Auto’s sales release Wednesday did not break down February deliveries by model.
On Feb. 27, along with its fourth-quarter earnings report, Li gave upbeat guidance for 52,000-55,000 EV deliveries in the current first quarter.
With January and February deliveries in hand, that forecast implies March deliveries of 20,239-23,239.
On Feb. 8, Li launched the L7, which it describes as a five-seat flagship family SUV. It said Wednesday that the first L7 deliveries to customers will begin in March.
The startup and its peers have several new and upcoming new models as they fight to grow share in China’s insanely competitive EV market.
LI stock popped 4.5% to 24.69 Wednesday.
Nio EV Sales
Nio sold 12,157 EVs in February, up 98.3% vs. a year ago and up 43% from January. The Chinese startup sold 8,506 electric vehicles (EVs) in January, down from 15,815 in December.
The February deliveries consisted of 5,037 premium electric SUVs, and 7,120 premium electric sedans.
Nio announced February deliveries as part of its fourth-quarter 2022 earnings release Wednesday. The EV maker, sometimes called China’s Tesla, reported a far worse-than-feared Q4 loss and gave weak revenue guidance for the current first quarter.
The Nio earnings release alluded to “five new products” based on a next-gen EV technology platform in 2023, without offering details.
The company reduced EV prices recently, following Tesla price cuts.
Nio stock dropped 3.7% to 9.04 Wednesday.
XPeng EV Sales
XPeng sold 6,010 EVs in February, down 3.5% from a year ago but up 15% from January. The startup sold 5,218 EVs in January, down from 11,292 EVs in December.
Its sales release Wednesday did not break down February deliveries by model.
The startup has especially suffered from lackluster sales and execution issues. The relatively new G9 SUV made up about half of January sales as production ramps up. An updated P7 sedan is also on the way.
XPeng also slashed prices in Tesla’s wake. XPeng’s EVs are priced in the same general range as Tesla’s.
On Wednesday, XPEV stock rose 2.4% to 9.18.
BYD EV Sales
BYD sold 193,655 EVs, including hybrids, in February, up 119% vs. a year ago and up 28% vs. January, BYD sold 150,164 EVs in January, down roughly 36% from December.
February deliveries included 90,639 all-electric or battery electric vehicles (BEVs), up 1110% vs. a year ago and up 27% vs. January. It also included roughly 101,025 plug-in hybrid vehicles and 1,991 commercial vehicles.
In 2022, BYD more than tripled EV sales, including hybrids.
The Warren Buffett-backed EV giant has surged past Tesla China sales.
Exports remain a small share of BYD’s total sales but hit a new high of 15,002 in February. BYD has a big international expansion underway.
BYDDF stock, which trades over the counter, lost 1.4% to 26.93 Wednesday.
China EV Sales
Retail sales of “new energy vehicles,” which include hybrid-electric vehicles, totaled 332,000 units in January, down 6.3% from a year earlier and down 48.3% from December, according to the China Passenger Car Association (CPCA).
The slump reflected a slowdown during the Chinese New Year holiday, which began in mid January.
While China EV sales more than doubled in 2021 and 2022, they are expected to slow significantly this year. The slowdown comes amid macro headwinds and the end of subsidies.
However, Chinese EV makers, including the U.S.-listed startups, are ramping up output after tough, Covid-fueled production challenges last year.
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