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Li Auto recorded a record month of deliveries in June.
Courtesy of Li Auto
June deliveries from Chinese electric vehicle manufacturers
Li-Auto
,
XPeng
,
And
NIO
were large but uneven. The results contain some lessons for investors before
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The closely watched delivery report is expected on Sunday.
China’s electric vehicle trio delivered 51,902 vehicles in June, a record for any month and an increase from the 41,280 delivered in June 2022. The result showed that demand for electric vehicles in China has increased.
This is good news for investors in
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(TSLA symbol),
BYD
(1211.Hong Kong) and other electric vehicle manufacturers. China is the biggest market for new cars and, more importantly, new electric vehicles. In 2022, more than 60% of all battery electric vehicle sales took place in China.
The records are excellent, but the month for
NIO
(NIO),
XPeng
(XPEV), and
Li-Auto
(LI) was very unequal.
Li Auto delivered 32,575 vehicles, up 150% from 13,024 delivered in June 2022. This is a record for the company and the first time it has exceeded 30,000 units in a month . Li accounted for more than 60% of the combined deliveries.
NIO shipped 10,707 units in June, down approximately 17% from the 12,961 units shipped in June 2022.
XPeng shipped 8,620 units in June, down 44% from 15,295 shipped in June 2022.
Along with strong overall demand, the results of the three Chinese EV start-ups showed that not all companies are winners and that the strongest are getting stronger. That’s not good news for XPeng, which has struggled the most lately. Shares of XPeng have fallen 56% in the past 12 months, while
S&P500
And
Nasdaq Compound
gained about 16% and 24%, respectively, over the same period.
NIO stock also struggled. Shares are down about 55% in the past 12 months. Li stock was the relative winner, losing only 7% over the period.
The market loves growth. Li’s deliveries in 2023 are up about 130% from last year. NIO achieved a growth of 7%. Since the start of the year, XPeng shipments have fallen by 40%.
Chinese electric vehicle leader BYD has increased its electric battery shipments by around 90% year-to-date through May. (June deliveries are expected soon). Shares of the company are down 20% in the past 12 months, but BYD’s market capitalization still sits north of $100 billion.
In China,
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has increased its deliveries to China by almost 50% this year. Its stock has gained about 15% over the past year. Tesla is the most valuable auto company in the world with a market capitalization north of $800 billion.
As the electric vehicle industry matures, it becomes increasingly difficult for small businesses to maintain momentum. It’s good for Li, BYD and Tesla. The news is not so good for others.
As for Tesla, Wall Street is looking for around 445,000 units delivered in the second quarter, compared to around 255,000 units in the second quarter of 2022 and around 423,000 delivered in the first quarter of 2023.
Write to Al Root at allen.root@dowjones.com