Chinese EV startup Nio (NIO) passed XPeng Motors (XPEV) and lee auto (LI) Electric vehicle deliveries in August, according to Thursday’s sales report. Nio’s August sales increased slightly compared to his July, while XPeng and Li Auto saw shipments decline after issuing conservative guidance earlier in the month.
Meanwhile, EV and battery giants BYD (BYDDF) should report August sales in a day or two. BYD Stock Is Selling Out Like Warren Buffett This Week Berkshire Hathaway (BRKB) said last week that it had sold some of its large holdings. BYD reported strong earnings earlier this week.
Nio Stock, Li Auto and XPeng are also struggling.
August is somewhat of a transitional month for EVs in China. Nio and Lee Automobile will start delivering new models at the end of the month, while Nio and BYD will start delivering other new EVs in September. XPeng will launch a new vehicle later this year.
NIO shares fell 2% before the market opened on Thursday. The stock rose 0.4% to 19.91 on Wednesday, just below the 50-day line. The stock is in the middle of a correction at the official buy point of 24.53, according to MarketSmith. However, the current market environment requires extreme caution.
Nio announced Thursday that it delivered 10,677 vehicles in August. This is an 82% increase over the previous year. August sales included 7,551 SUVs and 3,126 sedans. In total, car sales in 2022 increased by 28% to his 71,556 units.
On August 28th, Nio started shipping the ES7 SUV. Nio will start deliveries of the ET5 sedan on September 30, following the ET7 luxury sedan in March. Nio, which will also update the ES8 SUV soon, will have five EVs powered by the ET5. The EV startup announced Thursday that it delivered 398 of his ES7 SUVs in August.
Nio is strengthening its presence in Europe, sending ET7 to several countries.
The company will release its second quarter earnings on September 7, before the market opens. The Nio stock has a composite valuation of 32. It has a relative strength rating of 33. EPS rating is 7.
LI shares fell 2% in Thursday’s premarket activity. The stock fell 0.1% to 28.77 on Wednesday, reaching resistance again at the 200-day line. The stock has plummeted from his June 24 high of 41.49, especially since he was in mid-July.
Li Motor on Thursday announced 4,571 deliveries for August, down 56% from July and 52% from a year earlier.
This follows disappointing guidance on August 15, when Li Auto expects to deliver between 27,000 and 29,000 vehicles in the third quarter. This is down from the second quarter, and in July already he reported 10,422 deliveries.
Demand for Li Auto’s only vehicle, the Li One SUV hybrid, suddenly plummeted. The automaker has accused the more premium L9 hybrid SUV of cannibalizing. Li said he started delivering L9s on August 30, but the automaker expects he will deliver 10,000 of his L9s in September.
Yanan Shen, co-founder and president of Li Auto, said in a statement, “We have started deliveries of our flagship smart SUV, the Li L9, and are happy to hear that the Li L9’s first users have exceeded their expectations. I’m glad.
Shen added that the company is preparing to launch a scaled-down version of the L9, the Li L8, in early November, with shipments starting in the same month.
Li Automobile shares’ overall rating is 62 out of 99. It has a relative strength rating of 76. The EPS rating is 26.
XPEV shares fell more than 1% early Thursday morning. Shares rose 1.4% to 18.52 on Wednesday. XPeng’s stock price has struggled in 2022, hitting a 22-month low on Tuesday, well short of his August 2020 IPO price.
XPeng reported 9,578 deliveries on Thursday, up 33% year-on-year. This is a 17% decrease for him compared to July.
XPeng delivered 5,745 units of the P7 sports sedan model in August. It also delivered 2,678 P5 sedans and 1,155 of his G3i and G3 compact SUVs.
The new flagship G9 SUV will likely replace the aging G3 and should start shipping in Q4.
For the third quarter, XPeng expects deliveries of 29,000 to 31,000 vehicles, down from the second quarter. XPeng expects the combined August-September shipments to be less than 20,000, with July shipments on hand.
XPEV stock has a weak overall rating of 11 out of 99. It also has a relative strength rating of 9, which is very weak. EPS rating is 2.
BYDDF shares fell 4.35% to 30.75 in Wednesday’s stock market trading, the lowest since mid-May. Shares of the EV and battery giant fell 7.8% on Tuesday, below its 200-day moving average. On June 28, the stock price hit a record high of 43.61.
What Caused the BYD Stock Crash? Warren Buffett’s Berkshire Hathaway announced on August 30 that it had sold 1.33 million H shares on August 24 in Hong Kong, representing less than 1% of the company’s large stake. Berkshire still owns just under 8% of his BYD, but there are concerns it will continue to sell shares.
BYD’s stock had already plummeted on July 12, amid rumors that Buffett was planning to sell some or all of his longtime stake.Cathy Wood Ark Innovation ETF (ARKK) also has a small stake in BYD, as well as shares in Nio and XPeng.
On Monday, BYD announced that its second-quarter net profit tripled, easily beating expectations. BYD previously said that in the second quarter it sold 355,021 new energy vehicles (NEVs), up 256% year-on-year and 24% over the first quarter. NEVs include fully electric vehicles, plug-in hybrid vehicles and fuel cell vehicles.
Tesla (TSLA) reported 254,695 shipments in the second quarter, down nearly 18% from the first quarter. His EV giant, led by Elon Musk, leads his BYD in sales of all-electric vehicles, but the gap is closing.
Tesla Stock Vs.BYD Stock
On August 3, BYD reported record July sales of 162,350 electric and plug-in hybrid vehicles. This is a 222% increase over the previous year. By August 28, BYD said he had sold more than 136,000 vehicles in China, according to data from the China Automobile Manufacturers Association.
Automakers will roll out several new EV-only and hybrid-only models in the coming months. The Seal sedan is his BYD’s first clear competitor to Tesla’s Model 3. The vehicle’s dimensions and range are about the same as the Model 3, and $10,000 less.
Shipping should begin within the next few days. According to BYD, pre-orders for Seal have surpassed 60,000 since it opened on May 20.
BYD will launch several other models in the coming months. It will also expand to Australia, several other Asia-Pacific countries, and Europe in the coming months. It will land in Japan in 2023.
BYD does not have a comprehensive rating, which is the main IBD benchmark. But it has a relative strength rating of 46. This is an exclusive measure of the IBD Stock Checkup, which measures stock price movement with a top rating of 99. The EPS rating is 82.
Follow Kit Norton on Twitter @Kit Norton for more coverage.
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