Chinese electric vehicle inventories plummet despite record deliveries in June
Chinese electric vehicle companies, including NIO, Li Auto and XPeng Motors, have released their June deliveries. While all companies reported better than expected deliveries, their inventories did not respond favorably.
Li Auto released its June delivery report today. The EV company delivered 7,713 Li ONE during the month, 320% more than the corresponding period in 2020. This was a new monthly record for the company and it reported an order intake of 10,000 cars during the month, which is yet another record. .
Electric vehicle companies report record deliveries
Li Auto announced a total of 17,575 deliveries for June, 166% more than the corresponding period in 2020. Deliveries increased by almost 40% from the previous quarter and were ahead of plan. Li Auto previously said she expected between 14,500 and 15,500 in the second quarter. It had delivered 4,323 electric vehicles in May and 5,539 cars in April. The company’s shipments in May were lower than in April due to the chip shortage.
Li Auto deliveries
Among other Chinese electric vehicle companies, NIO also reported sequentially lower deliveries in May. However, XPeng Auto had reported more deliveries in May than in April. Commenting on the delivery report, Yanan Shen, co-founder and chairman of Li Auto said, “On the day that marks Li Auto’s sixth anniversary, I am delighted to share with you that, thanks to the strong approval of users for the Li ONE 2021, we set records for deliveries and new orders in June, the first full month of sales for the Li ONE 2021 after launch. “
Meanwhile, despite announcing record deliveries and exceeding expectations, Li Auto was trading sharply lower today. Other Chinese electric vehicle stocks are also down today.
XPeng engine deliveries
XPeng Motors released its June deliveries yesterday. It delivered 6,565 electric vehicles during the month, 617% more than the corresponding period in 2020. It was a record month for XPeng Motors. Its second quarter deliveries also climbed 439% to a record 17,398 vehicles. The company had forecast sales between 15,500 and 16,000 EV in the second quarter. While XPeng stock rose early yesterday, it fell towards the second half of the day.
Meanwhile, XPeng delivered fewer cars than Li Auto during the month. Among China’s top three electric vehicle companies listed on the US stock exchanges, XPeng slipped to third in terms of deliveries in June.
XPeng plans new models of electric vehicles
In its statement, XPeng said, “The company plans to launch the G3i SUV, the new mid-phase facelift version of the G3, in July 2021, with deliveries scheduled for September of this year. XPeng also plans to launch its third production model, the P5 smart family sedan, in the third quarter of 2021 with deliveries expected in the fourth quarter of 2021. ”The Chinese electric vehicle company added,“ Upon delivery, the P5 will be the first The world’s mass-produced intelligent electric vehicle equipped with auto-grade LiDAR technology. ” During this time, by Tesla CEO Elon Musk has not been a fan of lidar technology.
NIO, which is China’s most valuable electric vehicle stock listed in US markets, also released its June deliveries yesterday. It delivered 8,083 vehicles during the month, bringing its second quarter deliveries to 21,896. Deliveries were ahead of schedule. That said, Chinese EV companies generally provide cautious guidance and end up posting better than expected deliveries.
Tesla is also expected to release its second quarter deliveries soon. Unlike Chinese electric vehicle companies which provide monthly delivery reports and quarterly advice, Tesla gives annual advice and provides quarterly production data. The company is working to increase the number of deliveries towards the end of the quarter through marketing programs such as Free Overfeed.
Beware of Tesla after Chinese electric vehicle companies
After the delivery reports from Chinese electric vehicle companies, all eyes will be on Tesla’s delivery report. It was reported that the company was losing market share in the United States to models recently launched by competitors. Additionally, it faced backlash from customers in China, its second largest market where an angry customer protested at the Shanghai Auto Show.
The company had dismissed the allegations, to begin with, but quickly took a more accommodating approach. “The company’s arrogant and authoritarian stance in front of the public is disgusting and unacceptable, which could seriously damage its reputation and customer base in the Chinese market,” Chinese state newspaper Global Times said of this report. who was seen as arrogant. behavior of some Chinese consumers.
Tesla faces backlash in China
Tesla’s sales in China fell sharply in April and net orders nearly fell in May to 9,800 from 18,000 in April. However, Cui Dongshu, general secretary of the China Passenger Car Association, tried to downplay the number of orders and predicted that Tesla sold more than 10,000 units in China in May.
Tesla’s second-quarter delivery report would tell markets how the electric vehicle giant is dealing with the supply-side chip shortage, increased competition, and consumer backlash on the demand side.
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