Major Tesla rivals in China grew EV sales in the third quarter after launching new and more affordable electric vehicles.
Tesla archrival BYD on Monday reported record Q3 deliveries, with sales surging by double digits from the prior quarter to cross the 2-million mark this year.
Tesla itself posted disappointing Q3 global sales before Monday's open.
Among EV startups, Li Auto and Nio also scored their highest quarterly sales, while XPeng posted its second-highest quarter ever. Li led again among startups. The trio reported Q3 sales Sunday.
China EV sales remain strong despite challenging macroeconomic conditions and a major price war.
Tesla Rivals In China: BYD
BYD sold 287,454 EVs in September and 824,001 in Q3, up 17% quarter over quarter.
The Chinese EV giant achieved record quarterly sales, taking its tally for the year so far to more than 2 million EVs, including hybrid vehicles. That means the Warren Buffett-backed company has sold more electric vehicles in the first nine months of 2023 than the 1.86 million it sold for all of last year.
During Q3, BYD sold 431,603 battery electric vehicles (also known as BEVs, or "pure" electric vehicles), up 22.6% from the prior quarter. In terms of BEV sales, BYD is now neck-to-neck vs. Tesla, which on Monday reported 435,059 global deliveries during the third quarter.
In the current fourth quarter, BYD is likely to seize the BEV crown from Tesla.
BYD aims to sell at least 3 million electric vehicles, including hybrids, this year. Tesla is aiming for 1.8 million and doesn't make hybrid vehicles.
Shares of BYD stock lost 1.1% Monday, testing the 200-day moving average. Year to date, Tesla rival BYD's shares are up about 25%.
Li Auto Sales
Li Auto sold 36,060 electric vehicles in September and 105,108 for the full third quarter, up 21% from Q2. Li set a record for quarterly deliveries, surpassing its own guidance for 100,000-103,000.
Li touted strong September sales of the L7, Li L8, and Li L9. Those are all new, premium, hybrid-electric SUVs. All three topped 10,000 deliveries once again.
Notably, Li said it became the first Chinese EV startup to reach 500,000 cumulative deliveries. Its first all-electric vehicle, the Mega, is in the works.
LI stock retreated 1.3% in Monday's stock market trading, at 35.19. Year to date, Li stock is up more than 72%. Li Auto tumbled last week amid reports of sizable discounts due to greater competition, including from Huawei-backed Aito.
Nio EV Sales
Nio sold 15,642 electric vehicles in September and 55,432 in Q3, a quarterly sales record.
However, Nio's Q3 sales were at the low end of its guidance for 55,000-57,000. Its deliveries fell in September for a second straight month. Nio didn't break out EV sales by its eight models.
Analysts have high hopes for the new ES6, a totally overhauled version of Nio's top-selling electric SUV.
In September, Nio also launched its first smartphone and unveiled its first chip developed in-house.
Nio stock slid 2.7% to 8.79 Monday. Shares remain well below the 50- and 200-day lines. Year to date, Nio stock is down more than 10%. Shares have almost halved from the Aug. 4 high of 16.18.
XPeng Sales
XPeng sold 15,310 EVs in September and 40,008 in Q3, up 72% quarter over quarter.
The startup's Q3 deliveries were the second highest on record, coming in right at the middle of its target for 39,000-41,000.
After a weak 2022, XPeng has now grown deliveries sequentially for eight consecutive months, according to its sales release Sunday.
The new G6 crossover, a Tesla Model Y rival, made up more than half of September sales.
Shares of XPeng stock dipped 1.3% Monday.
XPeng surged last Friday, regaining the 50-day line and arguably offering a very aggressive entry. Year to date, XPeng stock is up more than 85%.
China EV Sales
For the month of September through Sept. 24, retail sales of passenger new energy vehicles (NEVs) in China stood at 508,000 units, up 11% from the same period the prior month, according to preliminary data from the China Passenger Car Association (CPCA).
So far this year, retail NEV sales have reached 4.951 million units, led by BYD, the No. 1 Tesla rival in China. That is up 36% year over year, according to CnEVPost.com.
However, growth is slowing in the world's largest EV market.
China EV sales more than doubled in 2021 and nearly doubled in 2022. They are expected to grow around 30% this year. Much of that growth has come from grabbing market share from traditional gas-burning vehicles.
