Tesla's Chinese rivals accelerated in June to cap off a strong second quarter for electric-vehicle sales, while the U.S. EV giant reported a decline in deliveries for the period. EV stocks in general got a boost from the delivery reports.
Startup EV stock Nio surpassed its second-quarter sales outlook and scored the biggest quarter-over-quarter sales increase. Nio on Monday reported record June and second-quarter sales on Monday.
XPeng and Li Auto also reported higher sales in June and for the second quarter, while Zeekr, a recent initial public offering, set records for both.
Chinese EV and battery giant BYD on Monday posted record June and second-quarter sales as well. Its archrival Tesla reported a 4% drop in global deliveries on Tuesday, while beating analyst expectations for the second quarter. Tesla stock continued to surge on Wednesday.
China EV Sales
A smoother road awaits China's electric vehicle makers given higher government subsidies and improving consumer demand, analysts said. But challenges remain.
"The strong (Q2) sales numbers add to evidence that the EV market in China is still growing despite worries about slowing momentum," one expert told the South China Morning Post. However, EV discounts and incentives are seen weighing on profitability.
BYD led a price war in the first quarter of 2024, hurting its rivals. Some of the startups plan to launch cheaper new electric vehicles in the months ahead, growing their challenge to both BYD and Tesla.
No. 1 Tesla Rival BYD's EV Sales
BYD sold 341,658 in June, up 35% vs. a year earlier and 3% above May's 331,817. That just topped December's record 341,043. For Q2, BYD sold 986,720 electric vehicles, also a record and up 57% vs. Q1's 626,263.
The robust quarterly tally reflects deep discounts. Since February, Warren Buffett-backed BYD has lowered prices of nearly all its cars by 5% to 20%.
BYD sells fully battery electric vehicles, or BEVs, and plug-in hybrids, or PHEVs. In 2023, BYD sold slightly more BEVs than PHEVs. This year, PHEVs have taken the lead, reflecting a global shift toward hybrids, as well as a more advanced BYD hybrid system with a greatly extended range. Demand for BYD's first two PHEVs with the new system reportedly has been very strong.
BYD stock is up modestly in 2024, a rare EV stock in positive territory. Shares of Tesla's No. 1 rival recovered the 50-day and 200-day moving averages in late May.
Tesla stock jumped 6% on Monday and another 10% on Tuesday after reporting delivery numbers. It extended that rally by nearly 7% on Wednesday
EV Stock Li Auto Sales
EV startup Li Auto delivered 47,774 vehicles in June, up 46.7% vs. a year earlier and up 36.4% vs. May's 35,020. That took Q2 deliveries to 108,581, up 25.5% vs. a year ago and up 35% vs. Q1's 80,400.
Sales of the cheaper, smaller L6 SUV were key, surpassing 20,000 units in June for a third straight month. Li Auto's L-series models are extended-range electric vehicles (EREVs), essentially a form of plug-in hybrid. The Mega minivan, Li Auto's first all-electric model, ha seen sluggish sales.
Li Auto stock popped on the news, but remains well below the 50-day and 200-day lines. The once-hot EV stock has lost nearly half its value so far this year, and is at its worst level since late 2022.
Nio EV Sales
Nio delivered a 21,209 EVs in June, up 98% vs. a year earlier and up 3.2% vs. May's 20,544. For Q2, Nio delivered a record 57,373 vehicles, a rare beat and nearly doubling Q1's 30,053.
Analysts said improvements to Nio's battery rental service helped to juice its Q2 EV sales. Nio also benefited from the overall rebound in China's EV industry, reports said.
Sales of the Onvo L60 could begin in September. In May Nio launched the Onvo L60 EV, which is poised to undercut the Tesla Model Y in price by 12%. Nio calls the Onvo its new, mainstream sub-brand. Until now, the startup has focused on the higher end of the EV market.
Nio stock jumped but like Li Auto, Nio stock has more than halved so far this year.
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New IPO Zeekr Sales
Zeekr delivered a record 20,106 vehicles in June, up 89.3% vs. a year earlier and up 8% from May's 18,616.
For the quarter, Zeekr delivered 54,811 EVs, a new all-time high. That was double a year earlier and 65.8% above Q1's 33,059.
Zeekr listed shares in the U.S. market in May. It's been an EV player in China since early 2021. China giant Geely founded the EV startup to fend off Tesla, Nio and others.
Its growing sales will be closely watched by Tesla stock investors. The Zeekr 001 model, a Model 3 rival, marked a milestone 200,000 deliveries in June. Zeekr also has a van-like model, called the Mix, in the works.
Zeekr shares remain below the $21 IPO price.
Laggard EV Stock XPeng Sales
Embattled startup XPeng delivered 10,668 vehicles in June, up 23.8% vs. a year earlier and 5.1% vs. May's 10,146.
XPeng delivered 30,207 vehicles in the second quarter, up 30.2% vs. a year earlier and up 38.4% compared with the first quarter's 21,821.
The Nio and Li Auto rival has especially struggled to keep pace amid China's EV price wars. It's counting on a more affordable sub-brand, called Mona, to reverse those woes.
On June 11, XPeng unveiled the M03 sedan, the first model from the new affordable Mona brand. The electric sedan, seen as a much cheaper rival to the Model 3, is expected to debut on July 3.
The laggard China EV stock has nearly halved so far in 2024.
