Nio (NIO), Xpeng Motors (XPEV) and Li Auto (LI) all tripled home sales in April, despite a chip shortage that halted Nio’s factory for several days. Sales slowed for the trio of Chinese EV launchers compared to the pace in March Tesla (TSLA) increases competition.
Shares of Nio turned slightly on Monday, while Xpeng and Li Auto also fell.
During the year, Nio’s sales in April jumped 125% to 5,147 electric vehicles. This includes 1,523 seven-seater SU8s, 3,163 five-seater SU6 SUVs and 2,416 EC6 electric crossovers.
Sales growth slowed from the rate of 373% that Nio saw in March.
But EV’s EV sales in April countered the chip shortage, forcing China̵
From year to year, sales of Xpeng Motors increased by 285% to 5,147 electric vehicles. This includes 2995 P7 sedans and 2152 G3 compact SUVs.
However, growth slowed from 384% since March.
During the year, Li Auto sales in April increased 111% to 5,539 hybrid electric SUVs. Sales growth slowed by 239%.
Li Auto reached a milestone of 500,000 and delivered faster than all its peers, said in a statement at the Chinese launch of EV.
Monthly sales of Nio fell by 2.1%. Nio said last week that second-quarter shipments will catch up with Q1 amid a shortage of chips. Xpeng sales increased 1% compared to March. Li Auto’s sales increased by 13% compared to the previous month.
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Nio Stock, Xpeng Stock
Shares of Nio fell 0.75% to 39.54 on the stock market today after hitting 41.45 during the day. Nio shares met resistance on the 50-day line after rebounding from the 200-day line in mid-April. Shares of Xpeng fell 3% and have not traded above the 50-day mark since February. Li Auto lost 1.5%.
All three shares of EV remain in a heavy bear market due to a number of factors, including growing competition in China. Tesla, which dominates the Chinese luxury electric car market, began selling a locally produced Model Y SUV this year.
Shares of Tesla fell 3.5% amid a report that the key plant in Berlin will not begin production until 2022. Shares closed just above its declining 50-day line. Shares of TSLA recovered above the 50-day line on Friday after falling more than 8% in the three days after the profit of the manufacturer of EV.
The Chinese EV race is heating up
After booming sales in 2020, Nio and Xpeng face stiffer competition. Tesla officially launched the new Model Y crossover in Shanghai on January 1, rivaling Nio’s EC6 and Xpeng’s G7, and boosting sales. It already sells a locally produced Model 3 sedan in China.
Traditional car giants are stepping up plans for electric cars in China. Volkswagen (VWAGY) began deliveries of the ID.4 crossover made in China at the end of March. Ford (F) accepts pre-orders for the Mach-E crossover, which starts local production.
Last month, Tesla raised the prices of China-made SUVs Y. The price increase signals that Tesla is “comfortable” with sales of its latest electric car for the Chinese market, local reports said.
With the growth of Tesla, Nio and its Chinese counterparts for electric cars plan to introduce new, more attractive electric cars. Last month, the Xpeng unveiled a smaller electric sedan that is touted as the world’s first mass-produced EV with lidar sensors.
According to Wedbush analysts, “China remains a new market opportunity for electric vehicles, as we believe that sales of electric vehicles could potentially double in the region in the next few years.”
Find the Aparna Narayanan on Twitter @IBD_Aparna.
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