Tesla's challengers in China reported higher May deliveries over the weekend, helped by promotions and incentives amid the EV price war. BYD stock jumped on Monday but its startup peers were mixed.
Li Auto posted the biggest sequential gain and the biggest monthly delivery total among startups.
EV giant BYD and startup XPeng reported higher deliveries vs. April. Nio and new issue Zeekr set delivery highs.
Market watchers had expected China EV sales to continue recovering in May from a weak start to the year, which was due in part to seasonal factors. But one expert told the South China Morning Post that "constant" price cuts will imperil the earnings outlook for Chinese EV makers, few of which are profitable.
No. 1 Tesla Rival BYD Sales
The Tesla archrival's sold 331,817 EVs in May, up 5.9% vs. April's 313,245 and 38.1% vs. a year earlier. That's still below December's record 341,043. Excluding 1,329 commercial EVs, BYD sold a record 184,093 plug-in hybrids (PHEVs) and 146,395 fully battery electric vehicles (BEVs).
PHEV sales have led BYD's rebound from early 2024 lows and are likely to keep spearheading BYD's growth amid the entrenched EV price war.
Since February, Warren Buffett-backed BYD has lowered prices of nearly all its cars by 5%-20%.
BYD on May 28 launched cheap, new hybrid electric vehicles capable of traveling 1,300 miles without recharging or refueling — opening a new front in the EV wars
BYD says its fifth-generation hybrid electric powertrain technology can deliver 2,100 kilometers (1,305 miles) on a full battery and full tank of gas, with some real-world tests reaching 2,500 kilometers.
That is roughly double the typical 500-700 miles delivered by the longest-range hybrid cars sold in the U.S. market today.
Plug-in hybrid sales are surging in both the U.S. and Chinese markets. Though plug-ins are powering China EV sales, Tesla sits out of the hybrid market, where BYD dominates.
On Tuesday, BYD also showed off its new Qin L and Seal 06 cars — both equipped with its latest hybrid tech and priced from under RMB 99,800 ($14,000).
BYD began deliveries of the Qin L and Seal 06 PHEV sedans just before the end of May, along with the all-electric Sea Lion 07 crossover, a Model Y rival.
In Q2, BYD is poised to reclaim the crown for battery electric vehicles, or "pure EVs," from Tesla.
BYD stock popped 3.9% on Monday. Shares recently regained the 50-day and 200-day moving averages.
EV Stock Li Auto Sales
Li Auto delivered 35,020 EVs in May, a 2024 high. Deliveries swelled 35.8% vs. April's 25,787 and 23.85% vs. a year earlier.
The EV startup had guided for Q2 deliveries of 105,000-110,000 electric vehicles. With 25,787 EVs delivered in April, that implied Li Auto expected to deliver 79,213-84,213 EVs in May and June combined.
Sales of the cheaper, smaller L6 SUV are key. Li Auto said Saturday that it's delivered over 16,000 L6 SUVs since deliveries began on April 24.
The L-series models are all extended-range electric vehicles (EREVs), essentially a form of plug-in hybrid. Li Auto also sells the Mega minivan, its first BEV model.
So far in 2024, Li Auto has delivered 141,207 vehicles, up 32.5% vs. January-May 2023.
Li Auto stock gained 1% in Monday's stock market trading, well below the 50-day moving average. Shares have more than halved since the beginning of March amid demand slowdown fears.
Sales of the Mega van have been sluggish while competition with Huawei's new Aito brand has intensified. Now BYD's cheap, new, 1,300-mile hybrid cars may pose a threat. Li Auto's claim to fame is electric vehicles with especially long driving ranges — and premium prices to match.
Li reduced the price of all its vehicles in April by up to 6%.
Nio Sales
Nio delivered 20,544 EVs in May, up 31.5% vs. April's 15,620 and 233.8% above a year earlier. That exceeded Nio's sales record from July 2023.
Year to date, Nio has delivered 66,217 vehicles up 51% vs. a year earlier. The startup's offer of free battery swaps boosted its May deliveries.
Nio reports first-quarter earnings on June 9, when it is expected to give a Q2 delivery estimate.
Deliveries of the 2024 ET7 and updated ES7, which began on April 30, will be watched.
Nio launched the Onvo L60 EV on May 15. The first model from BNio's more affordable new sub-brand takes aim at the Tesla Model Y while targeting China's mass market for growth. But deliveries of the vehicle are not expected to start until September.
Nio stock fell nearly 1%. Shares are consolidating above the 50-day line after hitting multiyear lows in April.
XPeng Sales
XPeng delivered 10,146 EVs in May, up 8% vs. April and 35.2% vs. a year earlier. That was a 2024 high.
The startup has guided Q2 deliveries of 29,000-32,000 electric vehicles. XPeng delivered 9,393 EVs in April, which implied deliveries of 19,607 and 22,607 electric vehicles in May and June combined.
The first model from XPeng's more affordable sub-brand Mona is expected to be unveiled in June.
Year to date, XPeng has delivered 41,360 EVs, up 26%.
XPeng stock lost 2.3% Monday. Shares remain just above the 50-day line but not far from all-time lows.
China EV Sales: Zeekr Vs. Tesla
Geely unit Zeekr delivered 18,616 EVs in May, setting a record for a second straight month. That was 15.7% above April's 16,089 deliveries and 114.5% higher than in May 2023.
It delivered 67,764 EVs in the first five months of 2024, up 111.7% year over year.
Zeekr listed shares in the U.S. last month, but it's been an EV player in China since early 2021.
The EV startup was founded by China auto giant Geely to fend off Nio, Tesla and others. Zeekr recently told CNBC that it is outselling the Tesla Model Y and Model 3 maker in parts of the country.
In the first quarter of 2024, Tesla's China sales fell about 4% vs. a year earlier. Its made-in-China EV sales reportedly tumbled 30% in March and 18% in April. Tesla, which doesn't report monthly China sales, likely saw a sales boost there as it stepped up incentives.
Zeekr's growth comes from a relatively low base and its sales are just a fraction of Tesla's global total.
Zeekr rose 1.2% on Monday. Shares rose 2.2% on Friday to 25.02, above the $21 IPO price.
Tesla stock shed 1% on Monday, still above the 50-day line.
