China EV and battery giant BYD set a new sales record in April, rising slightly vs. March and quadrupling vs. a year earlier. Nio and its EV startup peers suffered major declines as Covid-19 shutdowns hampered production and supply chains.
BYD's sales of electric vehicles and plug-in hybrids rose 1% vs. March, the company reported Tuesday. Nio said Sunday that April sales fell 49% vs. March, after production reportedly was briefly halted last month. Xpeng reported a 42% decline vs. March while Li Auto deliveries plunged 62%, after both Nio rivals flagged production and delivery concerns earlier in April.
After the savage Covid-19 hit in April, China's local governments are "likely to reintroduce" cash subsidies to boost EV sales, South China Morning Post reported Monday, citing analysts as well as sources at car manufacturers and dealers.
Chinese EV makers are emerging rivals to Tesla. China EV sales boomed 169% in 2021 and stayed hot in the first quarter of 2022. That changed in April, which saw China implement lockdown measures in certain cities to contain the renewed spread of Covid-19.
BYD EV Sales
Warren Buffett-backed BYD sold 106,042 new energy vehicles (NEV) in April, a record and up 1% from March's 104,878.
In April, BYD sales surged 313% from a year earlier. Among passenger cars, BYD sold 57,403 all-EVs, up 256% vs. a year earlier. Plug-in hybrid sales skyrocketed 439% to 48,072 units in April.
BYD, which makes its own chips and batteries, may have been more insulated from supply snarls.
As of the end of March, BYD shifted to producing only hybrid and electric vehicles, ditching pure gas and diesel cars.
BYD stock, which trades over the counter in the U.S., advanced 3.5% to 30.01 Tuesday, above the 50-day moving average. Shares are still below their 200-day average.
Nio EV Sales
Nio sold 5,074 vehicles in April, off 49% from March and down 29% vs. a year earlier. Production was shut down for part of the month as new Covid-19 outbreaks hit suppliers' output and shipments.
"The vehicle production has been recovering gradually," Nio said in Sunday's news release. It's working with supply partners "to accelerate the recovery of production to its full capacity."
April's tally included 693 ET7s, the first full month of deliveries for Nio's first EV sedan. On April 29, the first batch of "tooling trial builds" of the smaller ET5 electric sedan rolled off assembly lines and Nio expects to start deliveries in September, it said.
Nio also has three electric SUVs, with a fourth coming in a few months.
Shares edged up 0.2% to 17.54 on the stock market today, below the falling 50-day moving average. Nio stock rose 4.7% on Monday amid the EV subsidy news.
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Xpeng EV Sales
Xpeng sold 9,002 vehicles in April, down 42% from March but up 75% vs. a year earlier.
That backs up Deutsche Bank analyst Edison Yu, who wrote on April 27 that Xpeng had been less affected by Covid lockdowns than other China EV startups. Yu noted that Xpeng's supply chain management also appears more resilient than those of its startup peers.
The company is "continuing to actively navigate through the Covid situation, which in turn is affecting the overall supply chain, manufacturing and transportation of automobiles in China," Xpeng said in Sunday's news release. It reports first-quarter earnings on May 23.
In mid-April, Xpeng CEO He Xiaopeng warned that all automakers might have to suspend production in May if lockdowns didn't ease, Reuters reported. Soon after that, Shanghai did allow manufacturers, including Tesla, to resume operations with staff living on site in a "closed loop."
Shares advanced 0.9% to 25.61 Tuesday, still below the 50-day line. Xpeng stock gained 3.3% Monday.
Li Auto EV Sales
Li Auto delivered 4,167 Li One hybrid SUVs, down 62% vs. March's 11,034 and 25% below a year earlier. Many suppliers completely shut down, severely affecting vehicle production, Li said in Sunday's sales release.
"At present, we are working with our supply chain partners to restore production capacity, aiming to shorten the delivery waiting time for Li One users, while meeting all pandemic prevention and containment requirements," Yanan Shen, co-founder and president of Li Auto, added. The company reports for Q1 on May 10.
Earlier in April, Shen warned of a production hit, while apologizing for delivery delays. The startup delayed the April 16 unveiling of its second EV model, the L9 SUV.
Shares fell 1.7% Tuesday, well below the 50-day line. Li Auto stock popped 4% Monday.
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BYD Goes EV Only
As of April, BYD only produces hybrid and electric vehicles. In Q1, BYD's hybrid and EV sales nearly equaled Tesla's all-electric sales. They will almost certainly be No. 1 in Q2, with Tesla Shanghai shut down for much of April and still operating below normal levels.
BYD is due to release several new EVs and hybrids in the coming months. The BYD Seal is expected to be a big Tesla Model 3 rival, but with longer range, faster acceleration — and for $10,000 less.
Tesla does not report monthly sales, but industry trade data will reveal the EV giant's China sales in a week or two. There are indications that Tesla was among the hardest hit in China, given its sole plant in Shanghai. But it has the Fremont, California, plant, with the Berlin and Austin facilities slowly picking up output.
Shares gained 0.7% to 909.25 Tuesday, nudging above the 200-day line.
Amid CEO Elon Musk's Twitter purchase, Tesla stock plunged 13.4% last week, diving below its 50-day and 200-day moving averages.
