Nio (NIO), Li Auto (LI) and XPeng (XPEV) are due to report July sales Tuesday. Nio stock and Li Auto extended their hot streak Monday while XPeng took a breather, after huge rallies for Tesla’s China rivals in recent weeks.
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Investors will watch for another big month from Nio after its June sales jumped, reversing lackluster demand. Overall China EV sales also surged in June on rebounding demand.
Chinese EV giant BYD (BYDDF) will also report July sales in early August. Tesla (TSLA), which triggered a price war this year, reports global EV sales on a quarterly basis.
Last Thursday, Morgan Stanley raised its price target on Nio stock, Xpeng and Li Auto, following the launch of several new and more affordable electric vehicles.
“The lackluster first half of 2023 is now behind us, and we are starting to see an inflection point of meaningful operational improvement,” Morgan Stanley’s Tim Hsiao said in a note to clients. He cited “volume upturn, policy tailwinds, autonomous driving and technology monetization.”
Here are July sales expectations for the Chinese EV makers. Check back for updates on results.
Tesla’s China Rivals: Li Auto
Investors will watch whether Li’s July deliveries can sustain the 30,000 mark.
Its recent launches include the L7, L8 and L9 SUVs. Li’s first all-electric vehicle is due by end of year.
Li Auto, the clear leader among China EV startups this year, sold 32,575 EVs in June and 86,533 for the full second quarter, well above its prior guidance.
Shares of Li Auto rose 0.2% to 42.80 on the stock market today, well above the 50-day moving average. Li Auto stock has jumped roughly 22% in the past month and has more than doubled year to date, soaring 109.7%.
The EV startup belongs to the IBD 50 list of top growth stocks. Li reports earnings for the second quarter on Aug. 8.
Nio
Investors will watch whether Nio can breach the 20,000 delivery mark in July, which has been the subject of speculation on Chinese social media.
In July, Nio’s EV lineup was mostly new or totally overhauled, including the flagship ES6, and boasting lower prices…
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