China EV makers Li Auto, Nio and XPeng reported April deliveries early Wednesday, as well as EV and battery giant BYD, amid fierce competition. Nio stock jumped while other EV plays had slim moves.
Li Auto reported lower sales vs. March, while BYD, XPeng and especially Nio deliveries grew. All have rolled out new or refreshed models in recent months, but so has the competition from one another as well , Huawei-backed EV brands as well as phone giant Xiaomi, which has made a big space.
Insurance registrations pointed to a lackluster April for Tesla, which has slashed prices and offered big incentives to prop up China sales.
Meanwhile, China is now offering incentives for consumers to scrap older gas-burning cars to buy EVs or lower-emission ICE vehicles by year-end. That's according to a new policy announced on Friday.
The subsidy is RMB 10,000 ($1,409) for buying a new energy vehicle, which includes battery-only electric vehicles (BEVs), plug-in hybrids (PHEV) and fuel-cell vehicles. The subsidy for low-emission ICE vehicles is RMB 7,000.
The policy will likely especially benefit EV makers like BYD that sell many low- or moderate-priced vehicles, where the subsidy will account for a larger share of the price.
Li Auto Deliveries
Li Auto delivered 25,787 vehicles in April, down 11% vs. March but up 0.4% vs. a year earlier.
That includes the new Li Auto L6, which began deliveries on April 24.
The cheaper SUV is a smaller version of the L7, which in turn is smaller than the L8 and L9 SUVs. The L-series models are all extended-range electric vehicles (EREV), essentially a form of plug-in hybrid. Li Auto also sells the Mega minivan, its first BEV model.
On April 22, Li Auto slashed its L7, L8 and L9 prices by RMB 18,000-20,000, and cut Mega's price by RMB 30,000.
In March, Li Auto delivered 28,984 vehicles, after initially targeting 50,000 deliveries back in late February. Li delivered 80,400 EVs in Q1.
Li Auto will report Q1 earnings on March 8, with guidance for Q2 and the full year key.
Nio Deliveries
Nio delivered 15,620 vehicles in April, up 31.6% vs. March and 134.6% vs. a year earlier.
A more attractive battery-as-a-service (BaaS) offering, in which Nio buyers rent the battery, helped fuel gains.
The 2024 ET7 and updated ES7 debuted at the Beijing Auto Show, with deliveries starting on April 30.
Nio delivered 30,053 EVs in Q1.
XPeng Deliveries
XPeng delivered 9,393 EVs in April, up 4.1% vs. March's 9,026 and up 23% vs. a year earlier.
The EV maker has refreshed some models while offering significant discounts like many of its peers.
XPeng delivered 21,821 vehicles in Q1.
BYD Sales
BYD's sales totaled 313,245 in April, up 3.6% from March's 302,459 and 49% from 210,295 in April 2023. Passenger BEV sales were 134,465, down 3.9% vs. March but up 28.8% vs a year earlier. PHEV sales of 177,583 climbed 9.8% vs. March and 69% vs. a year earlier.
While PHEV sales are once again leading, BYD is still likely to reclaim the BEV crown from Tesla in Q2.
That also includes BYD's premium Denza, FangChengBao and Yangwang brands.
Exports swelled to 41,011 vehicles, beating March's record of 38,434. That's up 177% vs. a year earlier.
BYD sold 626,236 EVs in Q1, including 300,114 passenger BEVs. That was down sharply from Q4's 944,779 but up 13.4% vs. a year earlier.
On Monday, BYD reported first-quarter net income grew 11% in local currency, with revenue up 4%. Both missed analyst views. However, BYD's profit margins hit a fresh high despite the auto giant making big price cuts to spur demand.
Tesla Sales
Tesla doesn't release monthly China sales, though industry group data will provide April figures later in May.
Tesla has roughly 28,100 insurance registrations as of April 28. That includes 14,800 in the latest week. That follows fresh Tesla price cuts in China. It trimmed prices by 4%-6% for the Models 3 and Y, and up to 22% for imported Model S and X vehicles. Tesla also is offering 0% financing and other incentives.
EV Stocks
Li Auto stock edged up 0.3 to 26.35 after declining 2.5% on Tuesday. Shares are trying to bounce back after nearly halving from late February to late April, hitting their lowest levels in nearly a year.
Nio stock surged 11.65% to 5.27 after Tuesday's 2.6% gain, Shares are above the long-sliding 50-day line for the first time in 2024. Shares have rebounded for their worst levels in almost four years.
XPeng stock dipped 0.1% to 8.12. Shares edged up 0.4% Tuesday, trying to recover from a 52-week low.
BYD stock climbed 1.5% to 27.61 after falling 1.45% on Tuesday. Shares are close to forging a base that's formed almost entirely below the 200-day line.
Tesla stock retreated 1.8% to 180 after skidding 5.5% Tuesday, amid concerns following Elon Musk's sacking of the entire Supercharger and new vehicles teams. That's after surging 15% on Monday as the EV giant cleared key hurdles to launching Full Self-Driving in China.
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