Nio Stock, Tesla’s China Rivals To Report EV Sales After Covid Lockdowns

Nio stock is due to report April EV deliveries on Sunday after Nio (NIO) briefly halted production due to Covid lockdowns in China.

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Xpeng (XPEV) and Li Auto (LI) also report China EV sales on Sunday, after both signaled production and delivery concerns last month. Chinese EV giant BYD (BYDDF), seemingly less affected, will likely follow a couple days later.

Chinese EV makers are emerging rivals to Tesla (TSLA). China EV sales boomed in 2021 and stayed hot in the first quarter of 2022. That could change in April.

In addition to April production and deliveries figures, investors will be looking for revised quarterly guidance from China EV makers. That will give an indication of how quickly Nio and its peers expect to return to normal.

Nio EV Sales

In recent months including March, Nio’s EV sales lagged those of startup rivals Xpeng and Li Auto.

The April tally will include a full month of ET7 deliveries. Nio’s first electric sedan, a luxury sedan, began deliveries on March 28. Founded in 2014, Nio also sells three electric SUVs, with a fourth coming in a few months.

In April, Nio temporarily halted production due to Covid-19 lockdowns, which affected its suppliers. Production has resumed, but it’s clear at what pace.

Nio fell 2.8% last week to 16.70.

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Xpeng EV Sales

Xpeng has been less affected by Covid lockdowns that other China EV startups, said Deutsche Bank analyst Edison Yu on April 27, according to CnEVPost.com. Yu noted that Xpeng’s supply chain management also appears more resilient than those of its startup peers,

In mid April, Xpeng CEO He Xiaopeng warned that automakers may have to suspend production in May if lockdowns do not ease, Reuters reported. Soon after that, Shanghai did allow manufacturers, including Tesla, to resume operations with staff living on site in a “closed loop.”

Xpeng stock rose 3.1% to 24.61, but is still below a fast-falling 50-day line.

Li Auto EV Sales

Li Auto delayed the April 16 unveiling of its second EV model, the L9 SUV. Li President Yanan Shen warned that an auto parts shortage from Covid-19 disruptions are hitting overall production.

Li Auto stock edged up 0.45% to 22.43, but is below key moving averages.

Tesla Vs. BYD: Tesla Rival About To Seize EV Crown

BYD EV Sales

EV and battery giant BYD will report April sales in early May, possibly Tuesday.

BYD, which makes its own chips and batteries, could be more insulated from supply snarls. It’s possible that BYD will set a new sales peak, as a rapid expansion continues.

In March, BYD sold a record 104,878 electric and hybrid vehicles, up 333% vs. a year earlier and up 20% from February. Fully electric sales jumped 229% and plug-in hybrid sales vaulted 615%.

In April, Warren Buffett-backed BYD shifted to producing only hybrid and electric vehicles, ditching pure gas and diesel cars. Notably, BYD’s Q1 hybrid and EV sales nearly equaled Tesla’s all-electric sales. They will almost certainly be No. 1 in Q2, with Tesla Shanghai shut down for much of April.

BYD is due to release several new EVs and hybrids in the coming months. The BYD Seal is expected to be a big Tesla Model 3 rival, but with longer range, faster acceleration — and for $10,000 less.

BYD’s EV-only sales could top Tesla sales by end of 2022.

BYD stock dipped 0.85% last week to 29.02, but rebounded to close back above its 50-day moving average.

Tesla does not report monthly sales, but industry trade data will reveal the EV giant’s China sales later in May. There are indications that Tesla was among the hardest hit in China, given its sole plant in Shanghai. But it has the Fremont, California, plant, with the Berlin and Austin facilities slowly picking up output.

Tesla stock plunged 13.4% to 870.76 last week, diving below its 50-day and 200-day moving averages.

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