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China EV sales are looking to rebound in May — with Nio (NIO) in the spotlight after especially weak April deliveries. Nio stock made a new low Wednesday before rebounding higher.
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Nio is likely to report May sales on Thursday, along with its Chinese EV startup peers Li Auto (LI) and XPeng (XPEV). Chinese EV giant BYD (BYDDF) will follow in coming days.
Retail and wholesale EV sales were flat to up 1% in the first four weeks of May vs. April, data released May 30 showed. China’s EV makers have launched important new electric vehicles, while the EV price war started by Tesla (TSLA) is abating.
Currently, Tesla CEO Elon Musk is in Shanghai, pursuing a possible factory expansion and unveiling a revamped Model 3.
The U.S. EV giant raised prices in China and other markets in May. That could help to stabilize sales, analysts say. The price war led many car buyers to delay purchases, in anticipation of further cuts.
China EV Sales: Nio
Check back Thursday for May results.
Nio sold 6,658 EVs in April, down 35.9% from March amid a product changeover. That represented the second straight month-over-month sales decline.
But the startup has started or will start delivering several new and updated models in April, May and June.
Those include the EC7, ES8 and, importantly, the ES6 — which the company describes as an “all-new” version of its bestselling SUV since 2019.
Nio began delivering the new ES6 on May 24. So the model won’t make much of an impact on sales for the full month, but it could drive growth in June and the second half of 2023.
On June 9, Nio is set to report Q1 earnings. It will likely give Q2 delivery guidance at the same time.
Shares of Nio rose 1.6% to 7.53 on the stock market today. Nio stock hit a new 52-week low of 7.15 intraday.
XPeng
Check back Thursday for May results.
XPeng sold 7,079 vehicles in April, up 1.1% from March. That marked the third month-over-month sales increase after a string of declines.
The startup has guided Q2 deliveries of 21,000-22,000 electric vehicles, suggesting a stronger sales uptick in May and June.
The new P7i electric sedan is ramping up and will be key to May sales.
The growth driver in the latter half of 2023 is likely to be the new G6 SUV. It is supposed to launch by end of June, and XPeng has said that it expects the G6 to be a bestseller.
The G6 is seen as a Model Y rival, with a sleek design and updated interiors. It targets the growing “affordable luxury” segment, priced between 200,000 RMB (around $28,000) and 300,000 RMB.
XPEV stock edged up 1 cent to 7.88, after nearly hitting a 2023 low intraday.
Li Auto
Check back Thursday for May results.
Li’s sold 25,681 electric vehicles in April, up 23.3% month over month. The maker of premium hybrid-electric SUVs topped 20,000 deliveries for the second straight month.
The startup has guided Q2 deliveries of 76,000-81,000 electric vehicles, suggesting a further sales uptick.
Sales of the L7, another Model Y challenger, will be watched. Li also launched cheaper “Air” trims of the new L7 and L8 SUVs.
Li Auto continues to outperform its startup peers on sales, on the back of new models and strong execution. Demand for its luxury, long-range EVs has stayed strong even though Li hasn’t cut prices, unlike its rivals.
Shares of Li Auto fell 0.3% to 29.05 Wednesday, but rebounded strongly from its 21-day line intraday. LI stock is extended from a 26.37 buy point, meaning shares are not in the proper buy range.
BYD
Check back later for May results.
BYD sold 210,295 battery-electric and hybrid-electric vehicles in April, up 1.6% from March.
Sales of the cheap and small Seagull, a new EV, will be watched. The homespun EV giant continues to launch cheaper versions of its electric vehicles, including the Yuan Pro and Song Pro in late May.
Shares rose 1.5% to 30.21 Wednesday. BYD stock has fallen below a 31.17 cup-with-handle buy point from a breakout earlier in May. But that entry is still valid.
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Chinese EV Market Slowdown
China’s NEV or “new energy vehicle” sales fell 2.6% in April to 636,000 units vs. March, after rising for two months, the China Association of Automobile Manufacturers said May 11. NEVs include all-electric, hybrid-electric and hydrogen fuel-cell vehicles.
Overall China car sales rose 2.1% to 1.65 million units in April from a month earlier.
While April NEV sales more than doubled on a year-over-year basis, that picture is less meaningful. Amid harsh Covid-19 lockdowns, vehicle production and sales in that country had cratered a year ago.
Growth is slowing in the world’s largest EV market.
China EV sales more than doubled in 2021 and 2022. They are expected to grow 30% this year, according to the International Energy Agency.
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