EV Deliveries Continue To Fall In China As The Competitive Battle Rages On
Portfolio Pulse from Upwallstreet
EV deliveries in China continue to decline, impacting shares of major EV manufacturers. Nio, XPeng, Li Auto, Tesla, and BYD all experienced significant share price drops following the release of February delivery figures by the China Passenger Car Association. Tesla and BYD's shipments decreased, with Tesla hitting its lowest level since December 2022 and BYD since May 2022. Li Auto, despite a YoY rise, saw a month-on-month drop, as did Nio and XPeng. Nio's Q4 results showed widened losses and a disappointing outlook, contrasting with XPeng and Li Auto's profitability. The intense competition and price war in the EV market in China are highlighted.
March 05, 2024 | 5:49 pm
News sentiment analysis
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NEGATIVE IMPACT
BYD's shares were off about 1% upon the news, despite dethroning Tesla as the top EV maker. February sales saw a significant drop.
Although BYD dethroned Tesla, the sales drop and minor share price decline indicate a negative short-term impact.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
Li Auto's shares tumbled nearly 14% following the news, despite a YoY rise in deliveries. The company also expects a QoQ slump in deliveries.
The sharp share price drop and expected delivery slump indicate a negative short-term impact, despite YoY growth.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
Nio's shares dropped 8.3% following the release of disappointing February delivery figures and widened Q4 losses. The company also provided a weak outlook for Q1 shipments.
The significant share price drop and disappointing financial results directly impact investor sentiment and Nio's short-term stock performance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Tesla's shares dropped 7% after reporting its lowest shipment level since December 2022, indicating a challenging market environment in China.
The significant shipment decrease and share price drop reflect the challenging market conditions Tesla faces in China.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
XPeng's shares were down about 8.3% after the report, with a 44.9% month-on-month drop in deliveries. However, unlike Nio, XPeng has reached profitability.
Despite reaching profitability, the significant delivery drop and share price decline indicate a negative short-term impact.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90