Sales of electric vehicles in China jumped in October to Nio (NIO) from a year ago, but fell from the previous month as “zero-Covid” restrictions weighed on its suppliers. Shares of Nio rose on Tuesday despite missing an electric vehicle sales target.
Nio widely sold Xpeng (XPEV) last month, while slightly exceeding Li-Auto (LI). All three Chinese EV startups saw sales decline month on month, despite launching several new models in recent months to boost sales.
Additionally, Nio failed to meet its expectations for record deliveries in every month of the fourth quarter. The Chinese electric vehicle giant BYD (BYDDF) will release October sales in the coming days.
Hong Kong-listed Chinese stocks rallied on Tuesday amid unconfirmed reports of a relaxation of the country’s strict Covid-19 policies. But they cut their earnings after an official Chinese government spokesman said he was “unaware” of any such development, Bloomberg reported.
Sales of electric vehicles in China: Nio
Nio delivered 10,059 electric vehicles, down 7.5% from 10,878 in September, but up 174% from a year earlier. The October tally included 5,979 SUVs, including 2,814 new ES7s, and 4,080 sedans, including 3,050 new ET7s and 1,030 ET5s. The October tally also included leases in Europe, where Nio launched a lease-only program last month, the company said Tuesday.
Year-to-date, Nio’s electric vehicle deliveries are up 32% compared to 2021.
“Vehicle production and delivery have been limited by operational challenges at our factories, as well as supply chain volatility due to Covid-19 situations in some regions of China,” the statement added. sale of Nio EV.
With three new electric vehicle models, Nio previously said it expected record deliveries each month in the current fourth quarter. But October’s results show it missed that target.
In the third quarter, Nio overtook XPeng and Li Auto sales with a record 31,607 deliveries as production improved and new models were launched. He had fallen behind Xpeng and Li earlier this year.
On Monday, local media said Nio customers are seeing deliveries of the new ET5 sedan delayed due to Covid-19. On Tuesday, Nio’s two factories in Hefei were reportedly effectively closed due to Covid-related disruptions.
New obstacles to Covid-19 are widely felt in China, beyond the automotive sector, with Apple (AAPL) to disney (DIS) would also have been affected.
Nio will release its third quarter financial statements on November 10 before the US market opens.
Nio shares jumped 4.1% to 10.08 in trading today, after falling 0.2% on Monday. The shares had been significantly higher in Tuesday’s pre-market but pared their gains after the market opened. NIO is well below the 50 and 200 day moving averages.
XPeng sold 5,101 electric vehicles in October, down nearly 40% from September, continuing a rapid deterioration in month-on-month sales.
October deliveries included 2,104 P7 sedans, 1,665 P5 sedans and 709 G3i SUVs. Xpeng has delivered 623 units of its new G9 SUV, launched in September.
Year-to-date, Xpeng’s electric vehicle deliveries are up 56% from 2021.
“We are accelerating G9 deliveries to customers,” CEO He Xiaopeng said in an Xpeng EV sales release on Tuesday. november. “
Xpeng shares fell 2.4% to 6.45 on Tuesday. Shares fell 3.8% on Monday, just to record lows.
Auto Sales Li
Li Auto sold 10,052 vehicles in October, down 13% from September and up 31% from a year earlier.
The startup planned to discontinue the hybrid-electric Li One, its first model, in October. The baton passes to the new SUV L9, also hybrid. Deliveries of the new L8, a scaled-down L9, will begin this month, Li Auto said in Tuesday’s electric vehicle sales release. Li did not break down October’s tally by model.
At the end of November, Li will begin deliveries of the L8, a scaled-down L9. It also plans to release the L7 and the more affordable L6 in the coming year.
Li Auto shares gained 3.1% as of 2:05 p.m. Tuesday. Shares fell 4.5% on Monday after hitting a two-year low last week.
WORLD of sales
The Chinese electric vehicle and battery giant is gearing up to launch a new, cheaper version of its flagship Han electric sedan. It’s also accelerating new electric vehicles like the Seal, which launched in late August. In the third quarter, BYD sold 538,704 electric and hybrid vehicles, nearly tripling electric vehicle sales from a year earlier.
On October 28, BYD announced that third-quarter net profit jumped 350% from a year earlier in local currency, with revenue up 116%. Adjusted earnings soared 923%. These were in line with preliminary earnings figures released earlier in the month.
BYDDF stock rose 4.2% on Tuesday. Shares gained 3.4% to 22.64 on Monday after hitting a 52-week intraday low on Friday.
BYD and Nio launched several new electric vehicles in Europe in October, part of a major international expansion for the former. Exports represent a small but rapidly growing portion of BYD’s sales.
Sales of electric vehicles in China
Industry-wide auto and electric vehicle sales data for October will likely be released next week. This will include estimates of Tesla’s sales in China. Tesla stock rose 1% on Tuesday after edging down 0.4% to 227.54 on Monday. TSLA is off 16-month lows but below key levels.
China’s electric car market remained hot in the first nine months of 2022. Electric vehicle sales in China soared 83% in September, while overall car sales rose just 3%, a trough in two decades, according to data from the China Passenger Car Association.
However, a possible economic slowdown could threaten growth. And new cases of Covid-19 are breaking out as China pledges to continue its ultra-strict “zero Covid” containment policy.
The Covid-19 restrictions come even as China braces for an economic slowdown. You’re here (TSLA) and Ford (TSLA) cut prices for the Model 3, Model Y and Mach-E in late October amid signs of slowing demand in the world’s biggest electric car market. A Stellar (STLA) joint venture behind the Jeep brand will file for bankruptcy as sales in China continue to falter, The Wall Street Journal reported Monday.
Subsidies for electric vehicles in China end on December 31. This should boost sales at the end of the year, followed by weaker demand in January.
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