Nio (NIO), Xpeng Motors (XPEV) and Lee Auto (LI) All April sales tripled in home territory despite chip shortages that kept the Nio factory idle for several days. Sales of three Chinese electric vehicle startups slowed from March’s pace as Tesla (TSLA) intensifies competition.
Nio stock reversed slightly on Monday, while Xpeng and Li Auto also fell.
On an annual basis, Nio’s April sales jumped 125% to 5,147 EVs. This included 1,523 seven-seat ES8 SUVs, 3,163 five-seat ES6 SUVs, and 2,416 EC6 electric crossovers.
Sales growth slowed down from the 373% pace that Nio saw in March.
But the April sales of Nio’s electric vehicles challenged a chip shortage that forced China’s burgeoning Tesla to temporarily suspend factory production for five days starting March 29.
On a year-on-year basis, Xpeng Motors’ sales in April rose 285% to 5,147 EVs. This included 2,995 P7 sedans and 2,152 G3 compact SUVs.
However, growth has slowed down from the March pace of 384%.
Year over year, April sales of Li Auto increased 111% to 5,539 hybrid electric SUVs. Sales growth slowed down from 239% in March.
Li Auto hit the 500,000th shipment milestone faster than any of its peers, according to a statement from the Chinese startup of electric vehicles.
From month to month, Nio’s sales fell 2.1%. Nio said last week that Q2 shipments will be about the same as Q1 due to chip shortages. Xpeng sales are up 1% from March. Li Auto’s sales were up 13% from the previous month.
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Nio Stock, Xpeng Stock
Nio shares today in the stock market fell 0.75% to 39.54 after an intraday high of 41.45. Nio stock met resistance at the 50-day line after bouncing off the 200-day line in mid-April. Xpeng shares are down 3% and have not traded above the 50-day line since February. Li Auto shares lost 1.5%.
All three EV stocks remain in a very bearish market due to a variety of factors, including growing competition in China. Tesla, which dominates China’s luxury electric vehicle market, began selling the locally-made Model Y SUV this year.
Tesla shares fell 3.5% amid reports that a key plant in Berlin will not start production until 2022. The stock closed just above its 50-day border. TSLA shares bounced above the 50-day line on Friday after plunging more than 8% in three days after the electric car maker made a profit.
China Electric Vehicle Competition Heats Up
After a sharp rise in sales in 2020, Nio and Xpeng will face stiffer competition. Tesla officially unveiled the new Shanghai-made crossover Model Y, which competes with Nio’s EC6 and Xpeng’s G7, on January 1, and is ramping up sales. The locally made Model 3 sedan is already on sale in China.
Traditional auto giants are ramping up plans to build electric vehicles in China. Volkswagen (VWAGY) began shipping its Chinese crossover ID.4 at the end of March. Ford (F) is taking pre-orders for the Mach-E crossover, which begins production locally.
Last month, Tesla raised prices for Chinese Model Y SUVs. The price hike indicates Tesla is “happy” with selling its newest electric vehicle to the Chinese market, local reports said.
As Tesla grows, Nio and its Chinese EV companies are planning to release new EVs with more attractive pricing. Xpeng showed off a smaller electric sedan last month, which it touts as the world’s first production electric vehicle with lidar sensors.
According to Wedbush analysts, “China remains an emerging market for electric vehicles as we believe that sales of electric vehicles in the region could double over the next few years.”
Find Aparna Narayanan on Twitter at @IBD_Aparna…
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