China is currently experiencing an intense price war in the electric vehicle (EV) market, and the strategy seems to be paying off. Delivery results from September are showing promising numbers, with NIO, Li Auto, and XPeng jointly delivering a total of 66,831 vehicles, representing a staggering 116% increase compared to the same period last year. This solidifies September as the second-best month for combined deliveries, only surpassed by August's record-breaking 68,203 units.

NIO's Impressive Performance

NIO, a key player in the Chinese EV market, delivered 15,461 units in September, reflecting a notable 44% growth compared to the previous year. In the third quarter alone, NIO managed to deliver an impressive total of 55,432 units, an outstanding 75% increase from the same period last year.

Steadily Rising Sales

Wall Street analysts are projecting third-quarter sales of approximately $2.7%, an impressive growth of about 48% compared to the previous year. The disparity between unit sales and revenue can be attributed to strategic price cuts implemented by EV manufacturers in China, including Tesla. By lowering prices, these companies aim to maintain their market share while simultaneously stimulating demand. According to Citi analyst Jeff Chung, the average discount for EVs in China, calculated based on suggested retail prices, has increased from 2.5% a few months ago to 3.5% at present.

A Battle of Prices

Observing the trend closely, Chung has observed over 20 price cuts on EV models offered by at least 10 auto makers. He characterizes these actions as indicative of a full-fledged price war in the Chinese EV market.

XPeng and Li Deliver Impressive Sales Growth in Q3

XPeng and Li, two major players in the electric vehicle (EV) industry, have both reported substantial sales growth for the third quarter of this year. Despite concerns about pricing, the results indicate that demand for EVs is still on the rise.

XPeng delivered 15,310 vehicles in September, representing a remarkable 81% increase compared to the previous year. Over the entire quarter, XPeng delivered a total of 40,278 units, marking a significant 36% growth from last year. According to Wall Street analysts, the company is expected to generate around $1.2 billion in revenue for the third quarter, reflecting a 25% increase from the same period last year.

Li has also experienced an outstanding performance, achieving a remarkable 213% year-on-year sales growth with 36,060 units delivered in September alone. For the quarter, Li delivered a total of 105,108 units, representing an astounding 300% surge from the previous year. Analysts anticipate that Li's revenue for the third quarter will soar approximately 245% compared to the same time last year, reaching approximately $4.6 billion.

These results align closely with Wall Street's predictions, highlighting the continued growth in EV demand.

In terms of stock performance, XPeng's shares have soared by around 67% over the past six months, while Li's shares have risen by approximately 47%. On the other hand, NIO stock has experienced a slight decline of about 8%. In comparison, the S&P 500 and Nasdaq Composite indices have seen modest gains of approximately 4% and 8%, respectively.

Tesla, another key player in the EV market, is expected to release its third-quarter delivery figures on Monday. While Tesla does not provide monthly updates, analysts estimate that their deliveries for this quarter will amount to around 455,000 units, slightly lower than the 466,000 units delivered in the second quarter. Over the past six months, Tesla's stock has risen by approximately 28%.

Overall, the impressive sales growth demonstrated by XPeng and Li, coupled with the anticipation surrounding Tesla's upcoming report, reaffirms the continuous expansion of the EV market.

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