China EV giant BYD, along with EV startups Li Auto, XPeng, Nio and Zeekr, on Wednesday reported record December sales. But EV stocks fell broadly on Thursday though Nio rose.
Tesla reported Q4 EV sales on Thursday. The data showed BYD handily outpacing Tesla in the final quarter of 2024 to exceed its annual EV sales target, while Tesla fell short of its goal.
The China EV price war intensified in December, with BYD and Tesla among those slashing prices. The country's EV makers have already begun extending and expanding discounts for January.
EV Sales Jump 41% For China's BYD In 2024
BYD surpassed its 2024 sales target of 4 million electric vehicles with just over 4.27 million, up 41.3% vs. 2023. The Chinese EV and battery giant is likely to overtake Honda and Ford in 2024 global sales, according to various reports.
For December, BYD reported 514,809 EV sales, a new high and the third month above 500,000. Warren Buffett-backed BYD sold 506,804 EVs in November. For Q4, BYD sold 1,542,270 EVs, up 34% from the third quarter, and led by plug-in hybrid EVs. The tally included 119,323 EV sales in overseas markets.
In Q4, BYD sold 595,413 fully electric battery vehicles, or BEVs. That easily topped Tesla, which delivered 495,570 units globally, a quarterly record but missing analyst estimates.
For full-year 2024, BYD sold 1.76 million BEVs, up 12.1%. That included 417,204 EV sales in overseas markets, up 71.9%. It also put BYD just slightly behind Tesla in terms of full-year 2024 sales. For the full year, Tesla delivered 1.789 million electric vehicles, missing its own expectations for annual vehicle unit growth. Tesla reported 1.81 million EV deliveries in 2023.
BYD had also seized the BEV crown in Q4 2023, with Tesla regaining the title for most of 2024. The EV sales crown could continue to be in flux in 2025.
China EV Sales: Li Auto, XPeng, Nio, Zeekr
Li Auto reported December EV sales of 58,513 for a 2024 total of 500,508, up 33.1%. It's the first time an EV startup has exceeded 500,000. Q4 deliveries were 158,916, below Li's target of 160,000-170,000.
XPeng's EV deliveries surged to 36,695 in December, up 82.4% vs. a year earlier and 18.8% vs. November. Credit its new P7+ and subbrand Mona M03. Q4 sales hit 91,507, just above its forecasts for 87,000-91,000. Full-year deliveries swelled 34.2% to 190,068.
Nio's December EV deliveries reached 31,318, the first time it has exceeded the 30,000 mark in a month. Nio's December deliveries rose 72.9% vs. a year earlier and, importantly, were up 51.3% vs. November. Deliveries for the Onvo L60, a Tesla Model Y rival, topped 10,000. Q4 sales reached 72,689, in the lower end of Nio's guidance for 72,000-75,000. For 2024, Nio delivered 221,970 electric vehicles, up 38.7%.
Analysts at Deutsche Bank tied the month-on-month delivery increase to increased promotions in the main premium Nio EV brand, as well as improving supply for the new and more affordable Onvo EV brand. Embattled Nio had reported a sequential EV sales decline in November.
Zeekr sales came in 27,190 for December, its fourth straight record month. Q4 sales surged 99.8% vs. a year earlier to 79,250, bringing the full-year total to 222,123. Zeekr did not provide Q4 guidance.
Shares of BYD fell 2% in Thursday's stock market action, dropping further below the 50-day moving average. Li Auto stock edged up 0.1%. Leaderboard stock Tesla skid more than 6%. Nio jumped advanced 4.1%, paring gains, and XPeng shed 2.3%, both below the 50-day moving average.
Zeekr gave up 4.2% on the first trading day of 2025. It surged nearly 30% in the fourth quarter of 2024.
China EV Sales, EV Price War
In December 2024, China EV sales were expected to reach 1.4 million units, jumping almost 48% year on year and growing 10% from November, CnEVPost.com reported, citing the China Passenger Car Association. That would mark the fifth consecutive month of retail passenger EV sales above 1 million units, the report said.
But analysts warn of a race to the bottom as cutthroat competition and overcapacity threaten smaller and unprofitable makers of electric cars. Few are profitable, besides BYD, Tesla and Li.
The expiry of a Chinese government EV subsidy on Dec. 31 is likely to squeeze smaller players further, the South China Morning Post (SCMP) reported in late December.
Also in late December, BYD slashed Sealion SUV prices by almost 12% to woo more customers ahead of the Lunar New Year holiday, SCMP said. Simultaneously, Tesla cut the price of its made-in China Model Y SUV by 4%. Since then, BYD has discounted more EV models, including the Song and Qin.
Led by BYD and Tesla, China EV sales are expected to exceed 11 million units this year, up from more than 8 million last year. In 2025, China is on course to sell more electric vehicles than traditional vehicles with internal combustion engines for the first time.
Market watchers say the country could achieve its goal for electric vehicles to make up half of new vehicles sales by next year, a decade ahead of schedule and well ahead of the West.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
