Record Deliveries Boost Chinese EV Makers

Chinese electric vehicle (EV) makers are celebrating as early results for their July deliveries are released. The numbers are outstanding, marking a positive trend for companies like Tesla, BYD, and other auto manufacturers that sell battery-powered vehicles in the world's largest new car market.

Unprecedented Performance

On Tuesday, NIO, XPeng, and Li Auto announced their combined July deliveries, totaling an impressive 65,604 vehicles. This figure represents a remarkable milestone, surpassing last year's results by more than 100%.

Li Auto's Success

Li Auto, one of the leading EV manufacturers, delivered a record-breaking 34,134 cars in July. This achievement not only surpassed the company's previous June record of 32,575 deliveries but also demonstrated significant progress compared to July 2022, where they delivered 10,422 vehicles. In total, Li Auto has proudly delivered 173,251 units throughout this year alone, reflecting a remarkable 145% increase compared to the first seven months of the previous year.

NIO's Impressive Growth

NIO, another major player in the Chinese EV market, has also achieved outstanding results. They delivered 20,462 vehicles in July, setting a new record for the company. This figure is a significant leap from their June deliveries of 10,707 and an even more substantial improvement from the 10,052 vehicles delivered in July 2022. Year to date, NIO has successfully delivered 75,023 units, showing a remarkable 23% increase compared to the first seven months of last year.

XPeng's Steady Performance

XPeng has also shown promising performance in July, delivering a total of 11,008 cars. Although this figure slightly decreased compared to their July 2022 deliveries of 11,524 units, it is still an improvement from their June deliveries of 8,620 vehicles. So far in 2023, XPeng has successfully delivered 52,443 units, with a slight decline from the robust performance in the first seven months of 2022, where they delivered 80,507 vehicles.

These impressive delivery results highlight the growing demand and acceptance of electric vehicles in China. With each company reporting record-breaking numbers, it is evident that EVs have become a popular choice among Chinese consumers. As the Chinese EV market continues to flourish, manufacturers can expect further growth and success in the coming months.

XPeng's Rise Despite Weak Delivery Numbers

XPeng, one of the leading Chinese electric vehicle (EV) companies, has seen its shares surge by approximately 50% in the past month, despite posting the weakest delivery numbers among its peers. This notable increase in stock price can be attributed to a combination of factors, with rebounding deliveries being just one piece of the puzzle. An exciting development for XPeng occurred on July 25 when it announced a significant investment from and a partnership with Volkswagen (VOW3.Germany). Since this announcement, XPeng's stock has risen by approximately 36%.

NIO's Strong Performance

NIO, another prominent player in the Chinese EV industry, has seen its shares perform admirably as well, with an impressive increase of about 52% over the past month. On July 12, NIO announced a strategic investment from CYVN, which served as a catalyst for their stock's surge of around 42% since then.

Li's Steady Growth

Li, a key player in the Chinese EV market, has witnessed a steady growth rate of about 18% over the past month. While not as substantial as XPeng or NIO, this positive trend is worth noting.

Influence on Other Markets

In early trading on Tuesday, NIO's shares experienced a slight decline of about 0.3%, while XPeng's shares saw a modest rise of approximately 0.1%. Conversely, Li's shares gained about 2.3%. At the same time, the S&P 500 and Nasdaq Composite futures fell by approximately 0.3% and 0.4%, respectively.

Tesla's Performance and Market Dynamics

Tesla's stock experienced a decrease of about 0.7% in premarket trading. It appears that the Chinese delivery figures have not had a significant impact on Tesla's stock thus far. Nevertheless, these figures are expected to be satisfactory enough to avoid any disappointment. It's worth noting that strong performances by competitors can potentially lead to a loss in market share. However, investors generally view robust sales in China as an indicator of a healthy market. In fact, China has witnessed a remarkable growth rate of about 30% in the sales of all-battery electric vehicles, with approximately 2.5 million units being sold through June on a year-over-year basis.

While Tesla remains the largest EV seller globally, it currently holds the second position among EV sellers in China, with BYD (1211.Hong Kong) claiming the top spot.