April 14, 2021

Tesla’s Chinese Rivals Boost Sales in World’s Largest Automotive Market

These Chinese EV makers are Tesla’s biggest problem

Tesla's Chinese Rivals Boost Sales in World's Largest Automotive Market

Tesla’s Chinese Rivals Boost Sales in World’s Largest Automotive Market

Electric vehicle startups Nio, Li Auto and Xpeng have announced in the past few days that shipments have skyrocketed in 2020, ending the year with new monthly highs..

Strong demand reflects the overall recovery in China’s economy and its auto market. Seeking to become a leader in electric vehicle technology, the Chinese government has also supported the industry with subsidies, tighter restrictions on license plates and building infrastructure to recharge them..

From January to November, sales of electric vehicles increased 4.4% year-over-year, while total passenger car sales declined 7.6%, according to the Ministry of Industry and Information Technology of China..

Shares of three New York Stock Exchange (NYSE) -listed Chinese startups surged. Nio was one of the most successful Chinese companies in 2020 with over 1,100% profit.

Even though Chinese startups have made great strides, these numbers are still far behind Tesla. Ilona Mask (Elon Mask), which shipped five times more vehicles worldwide last year than three Chinese companies combined.

Tesla joins S benchmark stock index&P 500 in December, while US policy becomes a risk for Chinese stocks listed in this market.

Figures for 2020:

Nio

Nio said shipments more than doubled from last year to 43,728 vehicles.

The company went public in September 2018 but ran into financial difficulties a year later. Then, as China battled the coronavirus pandemic in early 2020, Nio received nearly $ 1 billion in funding from government investors. In August, the founder William lee (William Li) said the company plans to resume plans for international expansion in the second half of 2021, starting in Europe.

Shipments have grown steadily for five consecutive months, the company said, exceeding 7,000 units in December..

The Chinese startup also plans to unveil its first sedan soon..

Li Auto

Another Chinese electric vehicle company, Li Auto, announced Friday that it delivered 32,624 vehicles last year, just 12 months after handing over its first vehicles to customers..

Deliveries of the company’s first model, the Li One SUV, hit a record monthly high of 6,126 units in December, the automaker said..

Shares are up 150% since the startup’s initial public offering on the Nasdaq in July.

Xpeng

Xpeng announced on Monday that it has delivered 27,041 vehicles in 2020, which is also more than double the number a year ago. In December, the company delivered 5,700 electric vehicles, showing growth for the second month in a row.

The new P7 sedan, which began mass deliveries at the end of June, accounted for more than half of its annual sales..

Shares are up more than 185% since the initial public offering on the New York Stock Exchange in August.

Tesla

Tesla said it delivered 499,550 vehicles last year, just slightly behind the company‘s 500,000 target..

However, Elon Musk’s company set a new quarterly record, delivering 180,570 vehicles in the last three months of the year..

Wedbush Analyst Dan Ives (Dan Ives) attributes Tesla’s strong fourth-quarter performance to China, where the company has a factory with an annual production capacity of 250,000 vehicles, according to official reports..

«China remains an emerging market for electric vehicles as we believe total sales of electric vehicles in the region could potentially double over the next few years, given the deferred demand for electric vehicles across all price tiers.», – wrote Ives in a note over the weekend.

Ives expects that with continued growth in China, automaker Tesla will be able to deliver one million vehicles worldwide by 2022.

Tesla said last Friday that it will begin shipping the Chinese-made Model Y shortly for 339,900 yuan (about $ 52,600). According to Chinese media reports, this is 30% cheaper than the originally stated cost of 488,000 yuan (about $ 75,500).