Nio on Tuesday announced record EV deliveries for the third quarter, along with startup peer Li Auto. Chinese electric-vehicle and battery giant BYD surpassed a million quarterly deliveries, a new milestone. Nio stock rose for a fourth straight session, while Li Auto stock regained a key level. BYD stock cleared a buy point, striking a 52-week high.
Among other U.S.-traded Chinese EV startups, XPeng and Geely-owned Zeekr reported record September sales. China's EV makers rolled out new models and discounts last month, after expanding their lower-priced and mass-market offerings, which boosted EV sales.
Q3 China EV Sales
Nio delivered 21,181 EVs in September, its second-highest monthly total ever. That included 832 Onvo L60 crossover EVs. The higher-spec, lower-priced rival to Tesla's Model Y is expected to ramp up sales dramatically in the coming months. Nio delivered 61,855 electric vehicles in Q3, with sales rising 11.6% year over year and 7.8% quarter over quarter.
BYD sold 419,426 EVs in September, up 45.9% vs. a year earlier and 12.4% vs. August. The Chinese EV giant sold 252,647 plug-in hybrid electric vehicles (PHEV) last month, up 86.2% vs. a year earlier. Fully battery electric vehicles (BEVs) came in at 164,956, up 9.1% vs. a year earlier. For Q3, BYD's total sales were a record 1,134,892, up 37.3% vs. a year earlier and up 15% vs. Q2. That marked the first time that BYD's EV sales exceeded one million units in a single quarter, up from 986,720 EV deliveries in Q2.
In 2023, BYD sold slightly more BEVs than PHEVs. This year, PHEVs have taken the lead, helped by a global shift toward hybrids, as well as a more advanced BYD hybrid system with greatly extended range.
Li Auto delivered a record 53,709 EVs in September, up 48.9% vs. a year earlier and 11.6% vs. August. Q3 deliveries totaled 152,831, up 45.4% vs. a year earlier and 40.8% vs. the previous quarter. On Tuesday, the startup said it expects to produce and deliver its one millionth electric vehicle in October, becoming the first emerging EV maker to do so.
XPeng deliveries hit a record 21,352 EVs in September, up 39.5% vs. a year earlier and 52.1% vs. August. The new M03 sedan, from XPeng's new Mona affordable EV sub-brand, topped 10,000 units in its first full month of deliveries.
Zeekr delivered a record 21,333 EVs in September, up 79% vs. a year earlier and 18.4% vs. August. Q3 sales were 55,003, also an all-time best and up 51.1% vs. a year earlier.
Nio Stock Pops, BYD Stock Breaks Out
Shares of Nio rose 5.4% to 7.04 on the stock market today. Nio stock climbed 2.5% on Monday and 65.4% in September, recovering the 10-week and 40-week moving averages. That's after trading near four-year lows in August. Nio is down about 25% in 2024 so far, as well as over the past 12 months.
Li Auto stock soared 11.4% to 28.57 on Tuesday, regaining the 200-day moving average. Zeekr stock surged 10.2% to its highest level since June, after coming public in May. Shares of XPeng and BYD climbed more than 5% each.
On Tuesday, BYD stock seized a 13-month cup-base buy point of 36.27. Shares set a new high of 37.44 intraday. BYD stock has rallied 35.1% in 2024.
Tesla fell 1.5% on Tuesday with its Q3 global delivery report due this week. Year to date, TSLA stock is up 3.8% with the Tesla robotaxi event due on Oct. 10. Shares eye a 271 cup-base buy point, still below the entry.
Nio Onvo EV Driven by Nvidia AI Chip
In September, shares of Nio skyrocketed more than 65% for their best month since June 2020. China stocks rallied broadly late last month on Beijing's latest stimulus measures.
On Sunday, the nation's central bank ordered banks to lower rates on existing mortgages. And Tesla challenger Nio announced a big cash injection for its Nio China unit.
Notably, Nio began delivering the Onvo L60 to customers on Sept. 28. The electric SUV, from Nio's new and more affordable Onvo sub-brand, leverages Nvidia's artificial intelligence (AI) chips. The L60, seen as a potential growth driver for Nio, provided a modest bump to Q3 sales.
Nvidia's Drive Orin system-on-a-chip "serves as the AI brain of Onvo's smart-driving system," according to Nvidia. "With the integration of Nvidia Drive, the Onvo L60 is poised to deliver an advanced driving experience at an affordable price," the chipmaker says.
The L60 starts as low as RMB 149,900, or $21,000, without a battery. Users can opt for Nio's battery rental service. With an EV battery, the L60 starts at RMB 206,900.
The Model Y, Tesla's bestselling electric vehicle by far, starts around $35,000 in China after price cuts. That Tesla model is being challenged by several existing and forthcoming Chinese EVs, including options from XPeng, Li Auto and Zeekr. Unlike BYD, Tesla only makes battery electric vehicles, steering clear of hybrid cars.
Electric cars now account for more than half of new car sales in mainland China, as a brutal price war continues. Only two U.S.-traded Chinese companies — BYD and Li Auto — are profitable, despite rising EV sales in that country.
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