Chinese EV Makers Spent Up To 29% Of Q1 Revenue On R&D, Leaving Elon Musk's Tesla In The Rearview Mirror, But Rivian And Lucid Spent Even More
Portfolio Pulse from Anan Ashraf
Chinese EV startups Nio, XPeng, and Li Auto have significantly increased their R&D spending, with Nio and XPeng reporting net losses. In comparison, Tesla and BYD have lower R&D expenses as a percentage of revenue but higher vehicle deliveries. American startups Rivian and Lucid also reported high R&D costs and net losses.
August 05, 2024 | 12:06 pm
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POSITIVE IMPACT
Tesla spent $1.15 billion on R&D in Q1 2024, 5.4% of its revenue, and delivered 386,810 EVs.
Low R&D spending relative to revenue and high vehicle deliveries indicate strong financial health, likely leading to positive short-term stock impact.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Li Auto spent $422.3 million on R&D in Q1 2024, 12% of its revenue, and did not report a net loss.
Moderate R&D spending relative to revenue and no net loss suggest a more stable financial position, leading to a neutral short-term stock impact.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 100
NEGATIVE IMPACT
Lucid spent $284.6 million on R&D in Q1 2024, more than 1.6 times its revenue, and reported a net loss.
Extremely high R&D spending relative to revenue and net losses indicate severe financial strain, likely leading to short-term stock price pressure.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Nio spent $396.7 million on R&D in Q1 2024, accounting for 29% of its revenue, and reported a net loss.
High R&D spending relative to revenue and net losses indicate financial strain, likely leading to short-term stock price pressure.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Rivian spent $461 million on R&D in Q1 2024, 38% of its revenue, and reported a net loss.
High R&D spending relative to revenue and net losses indicate financial strain, likely leading to short-term stock price pressure.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
XPeng spent $190 million on R&D in Q1 2024, 21% of its revenue, and reported a net loss.
High R&D spending relative to revenue and net losses indicate financial strain, likely leading to short-term stock price pressure.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100