China EV sales recovered in May, with auto giant BYD and startup Li Auto reporting monthly records Thursday. XPeng continued an improving sales trend while Nio continued to lag amid a product changeover. Nio stock pared losses after hitting a fresh 52-week low intraday.
China's EV makers, including Nio, have launched important new electric vehicles, while the EV price war started by Tesla is seen abating.
The U.S. EV giant slightly hiked prices in China and other markets in May, though Tesla is offering increasing discounts on inventory cars in Europe and North America.
China EV Sales: BYD
BYD sold a record 240,220 EVs in May, up 14.2% from April and taking the year's total to above a million units, local media reports said.
In May, all-electric BEV sales hit 119,603, slightly exceeding plug-in hybrids at 119,489. BYD stopped producing vehicles powered entirely by internal combustion engines last year.
The BYD Seagull, a tiny EV that starts at below $11,000, hit sales of 14,300 in May, up from 1,500 initial sales in April.
Shares of BYD, which trade over the counter, rose 1.3% to 30.60 on the stock market today. BYD stock has fallen below a 31.17 cup-with-handle buy point from a breakout earlier in May. But that entry is still valid.
Li Auto
Li Auto sold a record 28,277 EVs in May. That was up 10.1% from 25,681 in April, which jumped 23.3% vs. March.
The maker of premium hybrid-electric SUVs topped 20,000 deliveries for the third straight month.
Li has previously guided Q2 deliveries of 76,000-81,000 electric vehicles. That means the startup has to sell at least 22,042 EVs in June to meet the low end of guidance.
Sales of the L7, another Model Y challenger, topped 10,000 for a second straight month. Li also launched cheaper "Air" trims of the new L7 and L8 SUVs.
Li Auto continues to outperform its startup peers on EV sales, on the back of new, technologically advanced models and strong execution, analysts say. LI CEO Xiang Li underscored that point in Thursday's release.
"Our smart electric vehicles and organizational processes are the two most critical strengths of Li Auto," he said.
Demand for Li's luxury, long-range EVs has stayed strong even though the startup hasn't cut prices, unlike its rivals.
Shares of Li Auto rose 1.1% to 29.36 Thursday. LI stock dipped 0.3% on Wednesday, but rebounded strongly from its 21-day line intraday. The stock is extended from a 26.37 buy point, meaning shares are not in the proper buy range.
XPeng
XPeng sold 7,506 EVs in May, up 6% from 7,079 in April. That's the fourth straight month-over-month sales increase after a string of declines.
The startup has previously guided Q2 deliveries of 21,000-22,000 electric vehicles. That means it will have to deliver at least 6,415 EVs in June to meet the low end of guidance.
Delivery volumes of the new P7i electric sedan significantly increased in May, the company said Thursday, without offering a specific number.
The growth driver in the latter half of 2023 is likely to be the new G6 SUV. XPeng said Thursday that it expects the G6 to be a bestseller. Presales of the G6 will begin on June 9, XPeng said, with volume deliveries starting next month.
The G6 is seen as a Model Y rival, with a sleek design and updated interiors. It targets the growing "affordable luxury" segment, priced between 200,000 RMB (around $28,000) and 300,000 RMB.
XPEV stock edged up 0.8% to 7.95 Thursday, after making a 2023 low intraday.
Nio
Nio sold 6,155 EVs in May. That was down 7.6% from 6,658 in April, which was off 35.9% from March.
The startup has a major product switch-over underway. It has started, or will start, delivering several new and updated models in April, May and June.
Those models include the EC7, ES8 and, importantly, the ES6 — which the company describes as an "all-new" version of its bestselling SUV since 2019.
Nio said Thursday that it began delivering the new ES6 to customers on May 25. It did not break down May sales by model, but touted the ES6's "enhanced driving and riding experiences." The EV could drive Nio's return to growth in the rest of 2023. The ES6 also marked Nio's fastest model from launch to delivery, after the startup took some flak for poor execution on deliveries compared with rival Li Auto.
Nio is set to report Q1 earnings on June 9. It may give Q2 delivery guidance at that time.
Shares of Nio fell six cents to 7.47 on the stock market today. Nio stock pegged a fresh 52-week low of 7 intraday before trimming losses.
Chinese EV Market Slowdown
In China, retail and wholesale EV sales were flat to up 1% in the first four weeks of May vs. April, data released May 30 showed. That marks an improvement from April, which saw EV sales fell 2.6% vs. March, though that decline was better than feared.
While April EV sales more than doubled on a year-over-year basis, that picture is less meaningful. Amid harsh Covid-19 lockdowns, vehicle production and sales in China had cratered a year ago.
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 30% this year, according to the International Energy Agency.
