While releasing its October delivery report, NIO said, “The vehicle production and delivery were constrained by operation challenges in our plants as well as supply chain volatilities due to the COVID-19 situations in certain regions in China.”
NIO Unveiled Models for Europe
Last month, NIO unveiled ET7, EL7, and ET5 models for Europe. It said, “These products are gradually made available for order in Norway, Germany, the Netherlands, Denmark and Sweden through NIO Subscription, leasing programs, and direct sales to users.”
While NIO stock has sagged this year, most analysts are bullish on the company. Ron Baron added more NIO shares amid the crash. The billionaire fund manager also added shares of Lucid Motors in the second quarter of 2022. We have a guide on how beginners can buy NIO stock.
Li Auto’s Deliveries Compared with NIO
Li Auto delivered 10,052 cars in October which was 31.4% higher YoY. The company’s cumulative deliveries reached 221,067 at the end of the month. Notably, Li Auto previously had only one model the Li-One. However, it has since unveiled other models also.
In its release, Li Auto said, “Since its launch, Li L8 has received positive user feedback and wide recognition, off to a strong start with continued increase in orders.” The company would officially begin L8 deliveries this month.
It added, “orders for Li L9 remained robust and the level of its user satisfaction continued to exceed their expectations, further solidifying our market position in the RMB400,000 and higher segment.”
In October, Li Auto’s deliveries were comparable to that of NIO. In September it had outsold both NIO and Xpeng Motors.
Xpeng Motors Disappoints Markets Yet Again with Its Deliveries
Xpeng Motors meanwhile disappointed markets yet again with its deliveries. The company delivered 5,101 cars in the month which was almost half of what it delivered in the corresponding month last year. Looking at the breakup, it delivered 623 G9 and 709 G3i SUVs. The deliveries of P7 and P5 sedans totaled 2,104 and 1,665 respectively in the month.
In the first 10 months of 2022, Xpeng delivered 103,654 cars which are 56% higher than the corresponding quarter last year. The company’s cumulative deliveries reached 241,607 at the end of October.
Earlier this year, it seemed that Xpeng Motors would overtake NIO in terms of deliveries. However, the company’s deliveries have sagged over the last couple of months. Markets have also punished the company for its performance and it fell 44.6% in October alone making it its worst month as a publicly traded company.
September wasn’t much better for XPEV and it fell 35.5% in the month. The stock closed at its all-time low yesterday and is now down almost 87% YTD. While there has been turmoil in all Chinese EV stocks including NIO, Xpeng has been the worst performer.
Citi Double Downgraded Xpeng Motors Stock
Amid the crash in Xpeng Motors stock, Wall Street analysts have also turned apprehensive about the company and recently Citi double downgraded the stock from a buy to sell. There are concerns over the health of the Chinese EV industry amid the deteriorating economy.
Also, there are visible signs of a price war in the world’s largest automotive market. Last month, Tesla announced a price cut in China after a tough third quarter.
Tesla reduced the starting prices for Model Y SUV from 316,900 yuan to 288,900 yuan. It cut prices for Model 3 sedan from 279,900 yuan to 265,900 yuan.
In August BYD began delivering the BYD Seal Model which is similar to Tesla’s best-selling Model 3 sedan. However, the model was priced $10,000 below that of Tesla’s Model 3. BYD expects to sell 4 million Seal cars in 2023.
BYD is backed by Warren Buffett’s Berkshire Hathaway. While Buffett has sold some BYD shares this year, he has bought more Apple shares. We have a guide on buying Apple stock.
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