China EV Sales: Li Auto Eyes A Huge Quarter After Nio Joined Price War

China EV sales are poised to jump in June, continuing to recover after a weak start to the year. Chinese startups Nio (NIO), Li Auto (LI) and XPeng (XPEV) will likely report sales of electric vehicles for June and the entire second quarter on Saturday.

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Chinese EV giant BYD (BYDDF) is also on deck. Tesla (TSLA) will report global Q2 sales in coming days.

Outlook for deliveries the rest of this year will be key. Analysts expect important new electric vehicles to boost second-half sales. China also extended a tax break for purchasing EVs in June.

Here are June and Q2 sales expectations for Chinese EV makers. Check back later for updates on results.

China EV Sales: Li Auto

Li Auto sold a record 28,277 EVs in May and 25,681 in April. The startup has guided Q2 deliveries of 76,000-81,000 electric vehicles, up from 52,584 in Q1. That means Li has to sell at least 22,042 EVs in June to meet the low end of its Q2 guidance. Some reports in local Chinese media suggest Li has already surpassed the high end of Q2 guidance.

Its May EV sales rose 10.1% from April, which jumped 23.3% from March.

Popular new models include the L7 SUV, which is off to a solid start. Li Auto will release its first all-electric vehicle, the Mega minivan, later this year.

Shares of Li Auto rose 2.45% to 34.71 in Tuesday’s stock market trading. Li Auto stock has soared 70% so far this year, far outperforming its startup rivals.

Nio

Nio sold 6,155 EVs in May and 6,658 in April. The startup has guided 23,000-25,000 Q2 deliveries, down from 31,041 in Q1. That means Nio has to sell at least 10,187 EVs in June to meet the low end of its Q2 guidance.

Its May EV sales fell 7.6% from April, which plunged 35.9% from March. Those declines came amid a major product changeover.

On June 12, Nio joined an EV price war started by Tesla (TSLA). The maker of premium EVs slashed prices after previously insisting it would not do so to attract car buyers.

New and upcoming models include the EC7 and ES8. More importantly, Nio launched the ES6, a totally overhauled, second-gen version of its bestselling electric SUV, on May 24.

Shares of Nio leapt 11.2% to 9.34 Tuesday. Nio stock snapped a six-day slide, bouncing further above the 50-day moving average.

XPeng

XPeng sold 7,506 EVs in May and 7,079 in April. The startup has guided Q2 deliveries of 21,000-22,000, up from 18,230 in Q1. That means XPeng has to sell at least 6,415 EVs in June to meet the low end of its Q2 guidance.

Its May sales rose 6% from April, which increased 1% from March.

New models include the P7i electric sedan. They also include the G6 SUV, which XPeng will start delivering in July and for which it has reported strong presales.

Analysts at Deutsche Bank say the embattled startup could be making its “last stand” with the G6.

Shares of XPeng popped 8.1% to 10.98. XPEV stock continued its June rebound, which has taken shares back above the 50-day and 200-day averages.

BYD

BYD sold a record 240,220 EVs in May and 210,295 in April. BYD’s May sales climbed 14.2% from April, which rose 1.6% from March.

The homespun EV giant continues to launch cheaper versions of its electric vehicles, including the Yuan Pro and Song Pro in late May. It also began delivering the cheap and small Seagull in May.

Shares of BYD added 0.5% to 32.42. BYD stock pulled back near the 50-day line after a strong start in June. Shares are back in range of a 31.07 buy point.

China EV Sales

Preliminary data suggest June retail sales of around 670,000 “new energy vehicles,” which include all-electric, hybrid-electric and fuel-cell vehicles. That would be up 15.5% from May, CnEVPost.com reported, citing estimates from the China Passenger Car Association (CPCA).

China is the world’s largest EV market, but growth is slowing there.

While China EV sales more than doubled in 2021 and 2022, they are expected to grow around 30% this year.

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