Tesla began deliveries of the updated Model Y SUV to Chinese customers, as the electric SUV wars intensify in the world's largest auto market. Li Auto stock rocketed above a buy point on Wednesday and XPeng and Nio also soared, while Tesla stock hit a fresh multimonth low.
China EV startup Li Auto announced its first all-electric SUV, the Li i8, on Monday. Nio released the first official image of its second Onvo model, the L90. On Friday, XPeng is set to unveil a refresh of its Model Y rival, the G6 SUV, local media said.
Amid stiffer competition in China, Tesla is making a much-needed refresh to the Model Y, its top seller, sharing photos of upgrades to the exterior, cabin and range on Wednesday. Li Auto also shared images of the upcoming Li i8, its first battery electric sports utility vehicle, comparing it to Tesla's larger Model X.
Tesla has lost some ground in China as the price war rages on. Rivals include EV and battery giant BYD, as well as EV startups Li, XPeng, Nio and Zeekr.
Li Auto's First All-Electric SUV To Heighten EV Rivalries
Li Auto has mostly focused on extended-range electric SUVs, a type of hybrid vehicle, up to now. It's expanding into battery electric vehicles with models like the Mega van and the upcoming i8 SUV.
Nio's affordable Onvo subbrand launched its first electric vehicle, the L60, last September. Onvo plans to debut the L90 in the second quarter of 2025 and officially launch it in Q3, reports said.
Onvo's L90 and Li Auto's forthcoming i8 will go head-to-head in the electric SUV market, reports said. Top sellers in the segment include BYD's Song and Yuan SUVs and Tesla's Model Y.
Tesla and BYD ignited a fierce price war in China, which has escalated over the past two to three years.
The EV startups responded with discounted prices and cheaper new models. China EV stocks continue to recover on improving EV sales and AI enthusiasm, holding huge gains year-to-date.
Li Auto Stock Soars Above Buy Point, Tesla Stock Slumps
U.S.-traded shares of Li Auto gapped up 10.3% in big volume in Wednesday's stock market action. Li Auto stock jumped above a 31.04 buy point from a 21-week cup base. Shares also soared on Tuesday.
The relative strength line, the blue line in the chart provided, hit its highest level since the cup base began to form, according to the MarketSurge chart. That is a favorable sign as the EV stock breaks out.
Tesla stock dropped for a fifth straight day on Wednesday, losing nearly 4% and reaching its lowest level since early November. On Tuesday, Tesla stock sank 8.5%. Investors are worried about weak Tesla sales in Europe and elsewhere.
Among China EV stocks, XPeng popped 5.5% on Tuesday and soared a further 15% on Wednesday. Xpeng stock made a 52-week high after a successful January breakout.
Nio stock jumped 10.5% to regain the 50-day line. Zeekr also surged 6.3%, below the 50-day. BYD stock made a new high intraday before paring gains to 0.6%.
Year to date, Li Auto stock has soared 37% and XPeng has skyrocketed 86%. BYD has surged 48% and Nio is up more than 8%, vs. a 28% year-to-date decline for Tesla.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
