Tesla rivals BYD, XPeng and Zeekr set new record sales, while Li Auto and Nio on Sunday reported deliveries fell slightly vs. October.
Overall it was a strong month, following a robust October for China EV sales.
China EV Price War
The China EV market has remained tough all year, kicking off with big BYD price cuts in early 2024 to grab market share.
In late November, Tesla announced a year-end Model Y price discount, adding to 0% loans and other incentives. Li Auto, Nio and BYD are ramping incentives for December.
BYD has signaled a brutal two-year electric-vehicle price war won't let up in 2025. According to local media, a leaked email showed BYD asking an unidentified supplier to reduce its prices by 10% from Jan. 1.
BYD reportedly dismissed the leak by saying annual price negotiation is customary. The auto giant's huge size and massive in-house operations give it strong leverage over suppliers.
Tesla Archrival BYD's EV Sales
BYD sold a record 506,804 EVs in November, up 67.9% vs. a year earlier. But it was up just 0.8% vs. October, when BYD topped half-million monthly sales for the first time.
In a Nov. 27 research note to investors, Deutsche Bank analyst Wang Bin expected BYD to deliver 520,000 EVs for November.
Out of its 504,003 passenger vehicles, BYD sold 305,938 plug-in hybrids, up 133.1% vs. a year earlier but down 1.6% from October. That snapped an eight-month string of record PHEV sales. Fully battery electric vehicle sales (BEVs) hit a record 198,065, up 16.4% vs. a year earlier and 4.5% vs. October.
Commercial EV sales, which include buses, heavy trucks and other big equipment, increased to a record 2,801 in November, up 433.5% vs. a year earlier and 31.4% vs. October.
BYD appears to be on track to top 4 million sales for 2024, including hybrids.
The China automaker continues to refresh and grow its lineup of electric vehicles. Most of BYD's sales still come from China, though it's expanding overseas. In 2023, BYD's EV sales reached a record 3 million battery electric vehicles and plug-in hybrids, surging 62% from the previous year.
The company's next-gen Blade battery is set to launch in 2025. It will last longer while improving vehicle driving range, according to China EV industry tracker CnEVPost.com.
Backed by Warren Buffett, BYD is set to take the BEV crown from Tesla in Q4, though perhaps not for the full year. The China EV giant more than doubled earnings for the third quarter.
U.S.-traded shares of BYD fell just over 1% in last week's stock market trading, a fifth straight weekly decline and the seventh loss in eight weeks. Shares have tumbled below the 50-day line.
BYD, which trades over the counter in the U.S., was not yet trading Monday.
Tesla stock fell 2.1% to 345.30 last week, reversing from a two-year high, but bounced 3.7% on Friday.
Li Auto's China EV Sales
Li Auto delivered 48,740 vehicles in November, up 18.8% vs. a year earlier but down 5.25% vs. October's 53,709. It was second straight sequential decline.
Deutsche Bank forecast Li Auto would deliver about 52,000 EVs in November.
Li Auto has just started offering a RMB 2,000 cash discount for the Li L7, L8, L9 and Mega. Along with zero interest loans, that could bring the total savings to roughly RMB 15,700 ($2,170).
LI stock fell 3.3% in premarket trade Monday. Shares popped rose 5.6% to 23.52 last week but after a four-week tumble that pushed Li Auto below its 50-day and 200-day lines.
The drop came after the China EV stock smashed earnings expectations for the third quarter. But Q4 guidance was tepid.
Based on its Q4 guidance of 160,000-170,000 vehicles for Q4, it now needs 57,551 in December to reach the low end.
Nio EV Sales
Nio's overall sales came in at 20,575, up 28.9% vs. a year earlier but down 1.9% from October's 20,976.
That included 15,493 deliveries from the more-premium Nio brand, declining 2.9% vs. a year earlier and 7% vs. October. The cheaper Onvo sub-brand delivered 5,082 Onvo L60 crossover, up 17.7% vs. October to a new higher.
Deutsche Bank expected the Nio brand to deliver 17,000 EVs and the Onvo sub-brand 5,000 units. The Onvo L60, launched in September, is a Tesla Model Y rival.
For Q4, Nio has guided 72,000 to 75,000 EV deliveries. It needs 30,449 deliveries in December to reach the lower end of that mark.
There are concerns that the Onvo L60 production ramp has been sluggish, though Nio has predicted a big increase in December.
Nio stock edged higher early Monday. Shares tumbled 7.6% last week, hitting resistance at the 200-day line.
The EV startup delivered a worse-than-feared Q3 loss earlier in November.
XPeng EV Sales
XPeng delivered a record 30,895 EVs in November, up 54.2% vs. a year earlier and 29.2% vs. October.
Deutsche Bank expected XPeng to deliver around 30,000 EVs.
Deliveries for the M03 sedan, from the affordable new Mona sub-brand, topped 10,000. Deliveries of the new P7+ sedan, which launched on Nov. 7, topped 7,000.
XPeng stock jumped 4% early Monday. Shares rose 1.5% in the latest week to reclaim a rising 50-day line.
The Nio rival posted a smaller-than-expected Q3 loss earlier in November.
Zeekr EV Sales
Zeekr delivered 27,011 vehicles in November, up 106.1% vs. a year earlier and 7.8% vs. October's 25,049. It was the third straight record month for Zeekr, a unit of China auto giant Geely.
But Deutsche Bank expected 30,000 EVs in November.
The Zeekr 7X SUV, which launched in September, has been seen as driving sales.
Zeekr stock climbed 3% in premarket trade. Shares popped 4.6% last week, just above a rising 50-day line. The startup reported narrower Q3 losses earlier in November.
China and its EV makers are monitoring President-elect Donald Trump's EV and tariff policies. Many Chinese EV and battery firms, including BYD, hope to expand in the U.S. market as growth slows at home.
Meanwhile, Tesla CEO Elon Musk has cozied up to the incoming president, who has criticizes de facto mandates on electric vehicles and favors a choice of power trains.
In October, General Motors CEO Mary Barra called the China EV price war "a race to the bottom." GM's robust U.S. profits offset China losses in the third quarter.
GM stock tumbled 5% last week, reversing from a two-year high, after Trump threatened 25% tariffs on goods from China and Mexico.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
