Nio (NIO), Xpeng Motors (XPEV) and Li Auto (LI) gear are set to report December sales this weekend, after a roaring November. Nio stock and its EV stock peers could return to form in 2022 if the China EV startups outpace sales targets for the final quarter of this year.
Chinese electric-vehicle and battery giant BYD (BYDDF) also will report December sales. Warren Buffett-backed BYD is emerging as the dark horse in China’s EV race. BYD will look to top the 100,000-vehicle mark, after setting a sixth monthly EV sales record.
China EV Sales Surge
Shanghai-based Nio more than doubled November sales, year over year. Nio delivered 10,878 vehicles from China, up 106% from a year earlier and 197% more than its 3,667 deliveries in October, amid production shutdowns.
Nio expects to deliver 23,500-25,500 EVs in Q4, down 4% vs. Q3.
In December, Nio unveiled the ET5, the latest in a fast-expanding vehicle lineup. The electric sedan will hit roads, along with the larger ET7, in 2022.
Xpeng more than tripled its sales in November vs. year-ago levels. The Guangzhou,-based startup delivered 15,613 EVs, up 270% vs. a year earlier and up 54% from 10,138 in October. It has forecast Q4 deliveries of 34,500-36,500, well above Q3’s 25,666, and is likely to top the midpoint of its estimate.
Li Auto nearly tripled its year-over-year sales in November. Beijing-based Li Auto delivered 13,485 Li One hybrid SUVs, up 190% vs. a year earlier and also up 76% from 7,649 in October. Li forecasts Q4 deliveries of 30,000-32,000, above 25,116 in Q3.
The EV war is intense in China. Both startups and stalwarts are vying to grow market share in a rapidly expanding market for electric vehicles.
Like Xpeng, BYD, also know as Build Your Dreams, more than tripled November sales. BYD delivered 91,219 EVs in November, including pure electrics and hybrids. That was up 241% year over year and up 14% from 80,003 units in October. The Shenzhen-based company grew EV sales by roughly 10,000 for the sixth straight month in November, despite chip shortages across the auto industry. BYD makes its own chips.
Meanwhile, Tesla (TSLA) sold 52,859 Model 3 and Model Y EVs in China, a solid number although down from 54,391 in October. Those sales figures include substantial exports to Europe.
Overall, China EV sales jumped 122% year on year to 378,000 in November and rose 20% from October. By comparison, overall car sales in the country fell 12.5% in November.
Nio Stock, China EV Stocks
Xpeng stock dipped 2 cents to 46.07, hitting resistance at its 50-day line. Li Auto retreated 1.7% to 29.90. BYD, which trades over the counter, fell 2.3%.
Tesla popped 2.5% to 1,093.94, briefly flirting with an early entry from a trend line.
China EV stocks slid in recent sessions, hurt largely by concerns over potential delisting of China-based issues from the U.S. market. A new law would require foreign companies to open their books to U.S. review within a three-year window or face delisting.
Several other factors weighed on Nio stock and its peers this year. Those included the strides that traditional car giants are making in China’s hot EV market.
BYD is raising its stake in its Denza electric-car joint venture with Daimler (DDAIF) to 90% from 50%, following years of weak sales for the brand.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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