Chinese electric vehicle (EV) stocks Nio Inc (NYSE:LI) grabbed investor attention on Monday following robust May delivery numbers.
Nio reported selling 20,544 EVs in May, including 12,164 premium smart electric SUVs and 8,380 premium smart electric sedans. Nio’s sales grew by 234% year over year.
XPeng sold 10,146 EVs, including 1,625 X9s. The sales grew by 35.2% Y/Y.
Li Auto sold 35,020 vehicles in May 2024, including over 15,000 Li L6s. The number of goods sold rose by 24% Y/Y.
Analysts attributed the performance to the significant discounts the EV makers offered to combat the global industrywide weakening demand. They also flagged a worsening earnings outlook due to the price war.
China is the leading automotive and EV market, with EVs accounting for 44% of new cars sold between January and April, SCMP cites the China Passenger Car Association. EV deliveries in mainland China account for over 60% of the global total.
The Chinese EV industry is also battling potential tariff hikes in the European Union, and in the US, Bloomberg reports.
Nio remains engaged in various initiatives to boost EV charging infrastructure in China, including an investment worth $207 million and a partnership with SAIC Motor Corp.
Price Actions: NIO shares traded lower by 2.69% at $5.245 at the last check Monday. XPEV is down by 2.95% at $8.065 and LI is down 0.49% at $20.15.
Photo by Shuttershock
