China EV startups will report New (NIO), XPeng Motors (XPEV) and Lee Otto (LI) August delivery of electric vehicles early Thursday. Giant EV and battery BYD (BYDDF) should report after a day or two.
BYD stock is being sold this week in the name of Warren Buffett Berkshire Hathaway (BRKB) revealed that she sold a portion of her large holdings last week. BYD reported strong earnings earlier in the week.
Nio, Li Auto and Xpeng stocks are also struggling.
August is somewhat of a transitional month. Nio and Li Auto began delivering new models at the end of August, with Nio and BYD scheduled to start delivering other new electric vehicles in September. Xpeng will launch a new vehicle later this year.
NIO shares rose 0.4% to 19.91 on Wednesday, below the 50-day line. The stock is in the midst of a consolidation with an official buying point of 24.53 points, according to MarketSmith. However, in the current market environment should be very careful.
In the first four weeks of August, Nio had sales of 8,927 vehicles, according to the China Association of Automobile Manufacturers.
On August 28, Nio launched shipments of the ES7 SUV. Nio will begin 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 with the ET5.
Shanghai-based Nio delivered 10,052 electric vehicles in July, up 27% from a year earlier but down 22% versus June. July sales included 7,579 SUVs and 2,473 sedans.
Nio said July production of the ET7 and EC6 crossover was limited by supply issues. The company stated that it is “working closely with supply chain partners” and expects to accelerate production in the third quarter.
Nio is ramping up its European presence, sending ET7 to several countries.
Nio reports second-quarter earnings on Wednesday, September 7, before the market opens. Nio stock has a composite rating of 31. Its relative strength rating is 32. It has an EPS rating of 7.
me stock cars
LI stock fell 0.1% to 28.77 on Wednesday, once again hitting resistance at the 200-day line. Shares have fallen sharply from their June 24 high of 41.49, especially since mid-July.
Li Auto had sold 3,837 cars in China as of August 28, the China Association of Automobile Manufacturers reports.
It follows disappointing guidance on August 15, with Li Auto expecting to deliver 27,000 to 29,000 vehicles in the third quarter. That’s lower than the second quarter and despite 10,422 deliveries already reported in July.
The Li One Hybrid SUV, which was Li Auto’s only vehicle, experienced a sudden drop in demand. The automaker is blaming the cannibals of its more exclusive L9 hybrid SUV. Li began deliveries of the L9 on August 30, with the automaker expecting 10,000 L9 deliveries in September.
Li Auto says it will soon unveil the L8, the L9 mini.
Li Auto stock has a composite rating of 62 out of 99. It has a relative strength rating of 76. The EPS rating is 26.
China EV Sales: XPeng Stock
XPEV shares rose 1.4% to 18.52 on Wednesday. XPeng stock has struggled in 2022, hitting a 22-month low on Tuesday, not far from its August 2020 IPO price.
The China-based electric car startup posted a bigger-than-expected loss while narrowly beating revenue expectations on August 23. XPeng posted a net loss of 46 cents per share while sales grew 87% to $1.1 billion.
Total vehicle deliveries for the second quarter increased by 98% to 34,422 vehicles. XPeng’s sales reports for July showed that the company’s total sales exceeded both Li Auto and Nio. The company delivered 11,524 vehicles in July, an increase of 43% year over year. In the first four weeks of August, XPeng delivered 8,380 vehicles, according to the China Association of Automobile Manufacturers.
XPeng currently has a lineup of three cars, with a new G9 sedan on the way. The automaker began accepting reservations for the G9 in August, followed by an official launch in September 2022, XPeng announced. This new flagship SUV is set to replace the old G3.
For the third quarter, XPeng expects to deliver between 29,000 and 31,000 vehicles, down from the second quarter. With deliveries in July, XPeng expects combined deliveries in August and September to be less than 20,000.
The XPEV stock has a weak composite rating of 11 out of 99. It has a relative strength rating of 8, which is also very poor. EPS rating is 2.
BYDDF stock fell 4.35% to 30.75 in stock market trading on Wednesday, its lowest level since mid-May. Shares of the electric and battery car giant fell 7.8% on Tuesday, breaking below their 200-day moving average. Shares hit a record high of 43.61 on June 28.
The catalyst for BYD stock’s decline? Warren Buffett Berkshire Hathaway It said on August 30 that it sold 1.33 million shares of H stock on August 24 in Hong Kong, less than 1% of its large stake. Berkshire still owns just under 8% of BYD, but there are concerns that it will continue to sell shares.
BYD stock had already plummeted on July 12 due to rumors that Buffett would sell some or all of his stake long ago. Kathy Wood Ark Innovation ETF (ARKK) also owns a small stake in BYD, as well as shares of Nio and XPeng.
BYD announced Monday that it tripled its net income in the second quarter, easily surpassing the number of views. BYD previously said it sold 355,021 new energy vehicles (NEVs) in the second quarter, inflated by 256% year over year and 24% versus the first quarter. NEVs include all-electric vehicles, plug-in hybrid vehicles, and fuel cell vehicles.
Tesla (TSLA) reported second-quarter deliveries at 254,695, a decrease of approximately 18% from the first quarter. EV giant Elon Musk still leads BYD in all-electric vehicle sales, but that gap is narrowing.
Tesla Stoke vs. BYD stock
On August 3, BYD announced record July sales of 162,350 electric and hybrid vehicles, up 222 percent from the previous year. As of August 28, BYD had sold more than 136,000 vehicles in China in August, according to data from the China Association of Automobile Manufacturers.
The automaker is introducing several new models of electric and hybrid cars only in the coming months. The Seal sedan is BYD’s first clear competitor to the Tesla Model 3. The car has roughly equal dimensions and range as the Model 3—and is $10,000 cheaper.
Deliveries are expected to begin in the next few days. BYD said pre-orders of the SEALs have exceeded 60,000 people since it opened May 20.
BYD has many other models that will be launched in the next few months. It is also entering Australia, several Asia-Pacific countries and Europe in the next few months. It will enter Japan in 2023.
BYD does not have a compound classification, which is a primary criterion for the IBD standard. But it has a Relative Strength Rating of 58, which is an exclusive IBD stock check measure of stock price movement with a score above 99. The EPS rating is 77.
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