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China EV Sales: Nio, Xpeng and Li Auto Rise Stocks in May

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New (NIO), Exping (XPEV) And the Lee Otto (LI) reported a rebound in electric car sales in May on Wednesday after China’s Covid lockdowns criticized EV startups in April. Chinese car giant and battery BYD (BYDDF) later this week. Shares of Nio and other Chinese electric car makers rose on Wednesday after strong gains on Tuesday amid fresh support for electric vehicles and the end of shutdowns.




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Passenger car sales in China in May are expected to decline 19% from a year ago, after declining 35% in April, according to the China Passenger Car Association. but, local reports They point to government support to boost auto sales in China for the second half of the year.

For example, the report says the Shanghai municipal government will cut some passenger car purchase taxes and increase the share of passenger car license plates by 40,000 this year. People who buy pure electric cars will also get a subsidy of 10,000 yuan ($1,503).

In Shenzhen, the high-tech center of south China’s Guangdong Province, eligible NEV buyers who register them in the city can receive a subsidy of up to 10,000 yuan per vehicle.

The Chinese government will encourage sales of affordable electric and hybrid cars in rural areas. Local media reported that rural support is likely, although the official announcement on Tuesday did not say anything. BYD, which has many low-to-moderate electric and hybrid cars, might help, but not Nio, Xpeng and Li Auto.

Tesla (TSLA) Production and sales in China are likely to rebound in May after the Shanghai plant was closed from March 28 to April 18. But Tesla Shanghai’s production has not yet returned to full capacity. Investors will get Tesla China production and delivery data within a week or two.

Tesla stock fell slightly on Tuesday to 758.26, cutting a three-day positive streak. Stocks are well below key levels.

Nio EV sales

Nio delivered 7,024 vehicles in May, up 38% compared to April and about 5% more than a year earlier. In April, sales fell nearly 50% to 5,074, down 29% compared to April 2021.

The company is opening Nio stores in Shanghai, its largest market, with deliveries to begin there on June 2.

Nio will announce first-quarter results on June 9. Earlier in May, Nio gave poor guidance on revenue and electric vehicle delivery.

NIO stock is up more than 1% before the stock market opens today. On Tuesday, shares rose nearly 5% to 17.39, heading towards the 50-day moving average, according to MarketSmith chart analysis.

Xpeng EV sales

XPeng delivered 10,125 vehicles in May. That was 12.5% ​​higher than April and 78% higher than May 2021. The electric vehicle manufacturer delivered 9,002 vehicles in April, down 42% compared to March.

On May 23, Xpeng gave lackluster guidance on revenue and electric vehicle delivery after both losses and revenue ballooned in the first quarter, amid supply disruptions. Xpeng then said it expects to deliver 31,000 to 34,000 electric vehicles in the second quarter, an increase of 78%-95% year-over-year but less than first-quarter deliveries of 34,561 electric vehicles.

XPEV stock is up 2% early Wednesday. Shares rose 4.4% to 23.50 on Tuesday, still below the 50-day line. XPEV stock has fallen more than 50% since it reached 56.45 on December 1, 2021, amid a general decline among electric vehicle stocks.

Li Auto EV sales

Li Auto delivered 11,496 Li One SUVs in May, up 176% versus 166% in April over the previous year. Li One is a hybrid, with a small gas engine as a range extender. In April, Li One shipments fell 62% to 4,167 versus 11,034 in March and were down 25% from a year earlier.

Li forecast last month that it would deliver 21,000-24,000 vehicles for the second quarter, an increase of 19.5% to 36.6% from the second quarter of 2021. But the May total suggests Li will easily beat those expectations.

Shares were up 2% in pre-market trading.

LI stock rose 3.3% Tuesday to 25.07, after reclaiming its 50-day streak on Friday.


Tesla bounce with rival flashes buy signal in China


BYD EV sales

Warren Buffett-backed BYD is likely to announce May sales on Friday. Last month, BYD launched pre-orders for the Seal EV, Tesla’s Model 3 competitor. The seal will begin deliveries in the next two months.

BYD posted record sales of 106,042 electric and hybrid vehicles in April, up 313% over the previous year. The auto giant’s internal battery and chip operations have shielded it from supply chain issues.

And local media reported that BYD is ready to buy six lithium mines in Africa. This will provide enough lithium to meet the battery’s needs for a decade. BYD already has some investments in its lithium operations.

BYDDF stock was not activated on Wednesday. It rose 2.5 percent to 35.69 on Tuesday. The stock is at the base of a deep teacup with 41.34 buy points. BYD stock is still in the range from the early entry at 34.60.

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