May 27, 2024

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EV Stocks: Tesla Rivals Li Auto, Nio, Xpeng, BYD Slump Despite Strong Deliveries Amid Delisting Fears

Warren Buffet-backed Chinese electric-vehicle startup BYD (BYDDF) delivered 91,219 new energy vehicles in November, a 217% year-over-year increase. Earlier this week, China-based EV makers Nio (NIO), Xpeng (XPEV) and Li Auto (LI) reported strong November deliveries. EV stocks fell sharply Friday.




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Part of the reason Nio, Li Auto and XPEV stocks are down is because U.S. regulators are going forward with a law that requires foreign companies to open their books to U.S. review within a three-year window or face delisting.

BYDDF stock is traded over the counter and presumably wouldn’t be affected.

In related news, China ride-hailing giant Didi Global (DIDI) said late Thursday that it will delist from U.S. exchanges and list instead in Hong Kong. Didi came public in late June, but Chinese regulators quickly imposed major restrictions on Didi’s operations, part of an overall crackdown on private enterprise, especially data-centric firms. Didi stock fell early Friday.

Strong Deliveries

BYD’s booming November sales topped last month’s total of  81,040, which represented a 249% year-over-year jump.

Meanwhile, Nio delivered 10,878 vehicles in November, 106% above a year earlier. That’s up sharply from October deliveries of just 3,667 amid production line shutdowns to prepare for new models. Deliveries include 4,713 ES6 SUVs, 3,482 EC6 crossovers and 2,683 ES8 vehicles. Nio had expected to deliver 23,500-25,500 EVs in the fourth quarter, little changed vs. Q3.

Xpeng delivered 15,613 EVs, up 270% vs. a year earlier and 10,138 in October. Deliveries include 7,839 P7 sedans, 5,620  G3 SUVs and 2,154 of its newer P5 cars. It had forecast Q4 deliveries of 34,500-36,500, well above Q3’s 25,666, but appears on track to easily top that figure.

Li Auto delivered 13,485 Li One hybrid SUVs in November, up 190% vs. a year earlier and a big increase from 7,649 in October. Li said in Monday’s Q3 earnings report that it expected Q4 deliveries of 30,000-32,000.

The Chinese EV makers are gaining ground on key rival Tesla (TSLA). Investors will get Tesla China sales and exports in the next week or two.

EV Stocks

BYDDF stock fell 4% to 37.25 on the stock market today. Li Auto stock tumbled 16% to 28.50.

Nio stock dropped 11.3%, falling further below its 50- and 200-day lines, according to MarketSmith. XPEV stock sank 9.3% to 43.79.

Meanwhile, U.S.-based EV makers Tesla fell 6.4%, as CEO Elon Musk sells more stock. And Rivian (RIVN) lost 5.5%, while Lucid (LCID) fell 2.4%.

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.

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