This Tesla competitor is a “top pick” with Warren Buffett dumping more shares of another investor’s business every day
Tesla’s leading rivals in China are set to report electric vehicle sales for October, along with startups New (NEW), Lee Otto (lee) and XPeng (XPEV) on Wednesday.
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Chinese electric car giant BYD (BYDDF) is also on deck. Tesla does not announce monthly electric vehicle sales.
The “top choice” among Tesla’s competitors in China
On Tuesday, analysts at Deutsche Bank maintained XPeng shares as a “top pick” among Tesla’s established and emerging rivals in China. Reports on Tuesday also said Warren Buffett Berkshire Hathaway (BRKB) trimmed its position in BYD stock.
Signs point to another strong month for the industry overall, following a strong September for electric vehicle sales in China.
Here’s what to expect:
Lee’s car dealership
Check back for October results.
Li Auto sold 36,060 electric vehicles in September, setting a record high of 105,108 electric vehicles for the entire third quarter, up 21% from the second quarter.
The company said monthly deliveries of the L7, Li L8 and Li L9 – all new premium hybrid electric SUVs – exceeded 10,000 each in August and September.
The startup is scheduled to report third-quarter earnings before the US market opens on November 9.
Li’s first all-electric car, the Mega, is in the works.
Shares of Tesla rival Li Auto fell 3.9% on the stock market today.
New sales
Check back for October results.
Nio sold 15,642 electric vehicles in September and 55,432 in the third quarter, up 135% quarter-on-quarter. During the quarter, sales declined in August and September versus July.
The startup does not achieve electric vehicle sales through its eight models. But October will mark the first full month of sales for the new, completely revamped ES6 SUV, Nio’s best-selling vehicle.
Nio stock fell 3.4% on Tuesday. Tesla’s competitor has yet to announce an earnings date.
XPing Sales
Check back for October results.
XPeng sold 15,310 electric vehicles in September and 40,008 vehicles in the third quarter, up 72% quarter-on-quarter.
The new G6 SUV accounted for more than half of September’s sales, after the company expanded production capacity and overcame previous problems.
The startup reports third-quarter earnings on November 15, before the US market opens.
XPeng shares fell 3.7% on Tuesday.
“In China, where electric vehicle adoption continues to rise, XPeng remains our top choice, offering a compelling roadmap for growth and margin improvement,” Deutsche Bank analysts said Tuesday.
They also pointed to recent partnerships between Tesla rival and Volkswagen (VWAGY) and the Chinese giant of passenger transportation services Didi (Didi).
Sales world
Check back for October results.
Buffett’s Berkshire continues to sell BYD shares, selling 820,500 shares worth the equivalent of $25.78 million, Reuters reported Tuesday, citing a Hong Kong stock exchange filing. The October 25 sale reduced its stake in BYD stock to 7.98% from 8.05%.
BYD sold 287,454 electric vehicles in September and 824,001 in the third quarter, up 17% quarter-on-quarter.
In the third quarter, BYD sold 431,603 battery electric vehicles (also known as BEVs, or “pure” electric vehicles), slightly fewer than Tesla’s 435,059 deliveries.
The Chinese electric car manufacturer backed by Warren Buffett is expected to overtake Tesla in electric car sales during the current fourth quarter.
Most of BYD’s electric vehicle sales still come from China, but it is rapidly expanding abroad.
On Tuesday, BYD began pre-sale of the Song L, a crossover version of its best-selling electric model. This comes one day after BYD reported record profits and increased profit margins for the third quarter.
BYD stock fell 3.8% on Tuesday. Tesla shares advanced 1.3%.
Sales of Tesla’s electric vehicles in China fell 11% in September, according to the China Passenger Car Association, amid intense competition from BYD and other rivals.
Electric vehicle sales in China continue to rise
In October, retail sales of passenger new energy vehicles (NEVs) in China are expected to reach about 750,000 units, up 0.9% from record high levels in September, according to China Passenger Vehicle Association (CPCA) estimates.
Industry experts say the Chinese electric vehicle market is likely to maintain strong growth momentum in the fourth quarter of 2023. New product launches and automakers’ discounts are driving sales.
The CPCA expects 8.5 million electric vehicles to be sold for the full year, led by Tesla rival BYD. This will rise by about 31% from 6.5 million in 2022.
But growth is slowing. Electric vehicle sales in China nearly doubled in 2022, after doubling in 2021.
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