The Chinese electric vehicle giant BYD (BYDDF) is also on deck to announce March and first quarter sales, in the coming days. Supported by Warren Buffett BYD has stepped up its challenge for You’re here (TSLA) in China, with booming electric vehicle sales.
Tesla is expected to report first quarter deliveries in the coming days, possibly as early as Friday, although it does not break down sales by geography.
Electric vehicle sales in China in the first quarter
The first quarter of the year is traditionally slower for electric vehicle sales in China, amid the Lunar New Year holiday. Nio and Xpeng also experienced production shutdowns ahead of the launch of new electric vehicles. China is also reducing subsidies for electric vehicles.
In January and February, Nio and its peers have increased deliveries of electric vehicles at a strong year-over-year rate, but saw month-over-month declines. They will likely see a significant rebound in March sales from February, based on stated targets. Their sales reports should arrive on Friday.
Nio has planned 25,000 to 26,000 EV deliveries in Q1. This suggests that March sales will reach around 9,200 to 10,200 electric vehicles. Nio delivered 9,652 vehicles in January and 6,131 vehicles in February.
Xpeng targets first-quarter deliveries of 33,500 to 34,000 EVs. This implies March deliveries of around 14,600. Xpeng delivered 12,922 EVs in January and 6,225 EVs in February.
Li Auto is aiming for 30,000 to 32,000 deliveries in the first quarter. That suggests sales of around 9,300 to 11,300 EVs in March. Li Auto delivered 12,268 Li One hybrid SUVs in January and 8,414 in February.
Chinese EV startups are emerging rivals to Tesla in China, the world’s largest market for electric cars. They mainly sell in their own territory but are starting to develop in Europe.
BYD did not give a March sales estimate, but could top 100,000 electric and plug-in hybrid vehicles for the first time. The electric vehicle and battery giant has announced that it will reach 1.5 million new energy vehicles in 2022.
Delisting fears hit Chinese EV stocks, Nio Stock
Nio shares plunged just over 5% on Thursday stock market trading. Li Auto fell 4.9% while Xpeng lost 3% BYD fell 2.4%. Tesla Stock down 1.5%. Electric vehicle inventories in China remain far from highs after falling last year.
Delisting fears hit Chinese electric vehicle stocks again. According to information released Thursday, the U.S. Securities and Exchange Commission (SEC) has placed more Chinese companies on a tentative list of potential delistings, including Baidu (BIDU).
Additionally, reports indicate that Tesla is extending the production shutdown at Gigafactory Shanghai due to a resurgence of Covid -19.
Despite Thursday’s plunge, Nio Stock holds to a 5% gain for the week. He rallied after news broke that Cathie Wood of Ark Investment, a big Tesla holder, bought Nio shares for the first time. Ark Invest also holds XPEV shares and BYD shares.
Nio’s new ET7, a Tesla Model S rival, won’t contribute much to the March sales report. Nio only started delivering this long-range, highly autonomous electric car on March 28.
In 2022, Nio plans to launch two more electric vehicles, doubling its lineup. Xpeng and Li Auto also have new EVs coming, while BYD is offering a slew of new EVs this year.
Baidu shares fell 8% on Thursday.
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