Chinese language electrical automotive start-up Nio doubles deliveries as Tesla competitors will increase
A Nio ES6 electric vehicle will be on display at an automotive experience area in Wanda Plaza in Beijing, China on November 28, 2020.
VCG | Visual China Group | Getty Images
BEIJING – China’s domestic Tesla competitors are boosting sales in the world’s largest auto market.
The electric car start-ups Nio, Li Auto and Xpeng each announced in the last few days that deliveries rose sharply in 2020 to end the year with new monthly highs.
The strong demand reflects the general recovery of the Chinese economy and the automotive market. In a national effort to become a leader in electric vehicle technology, the Chinese government has also supported the industry with subsidies, relaxed restrictions on license plates, and the expansion of charging infrastructure.
All-electric vehicle sales rose 4.4% year over year from January to November, compared to a 7.6% decline in total car sales over the same period, according to the Chinese Ministry of Industry and Information Technology.
The shares of the three Chinese startups, all listed in New York, have risen – Nio was one of the top performing Chinese companies listed in the US in 2020, up more than 1,100%.
As much ground as the Chinese startups have gained, the numbers still lag far behind Elon Musk’s Tesla, which stepped up its promotions in the country on New Year’s Day and delivered around five times more cars worldwide than the three startups last year. Oops combined.
Other financial challenges remain. Tesla joined the benchmark index S&P 500 in December, while US policy poses risk to Chinese stocks listed in that market.
Here are the numbers for 2020:
According to Nio, deliveries have more than doubled compared to the previous year to 43,728 vehicles.
The company went public in September 2018, but ran into financial difficulties a year later. While China took action against the coronavirus pandemic in early 2020, Nio secured around $ 1 billion in funding from government-backed investors. In August, founder William Li said the company expected to resume international expansion plans in the second half of 2021, starting with Europe.
Deliveries have risen steadily for five straight months, topping 7,000 units in December, Nio said.
The start-up also plans to present its first limousine on Saturday.
Another Chinese electric vehicle start-up, Li Auto, announced on Friday that it delivered 32,624 cars last year, just under 12 months after handing its first vehicles over to customers.
Deliveries for the company’s first model, the Li One SUV, hit a record high of 6,126 a month in December, according to automaker.
Shares are up 150% since the startup’s IPO on the Nasdaq in July.
Xpeng announced on Monday that it had delivered 27,041 vehicles in 2020, also doubling from the previous year. The company delivered 5,700 electric cars for a second straight month in December.
The company’s new P7 sedan, which began mass deliveries in late June, accounted for more than half of the full year.
Since going public on the New York Stock Exchange in August, stocks have risen more than 185%.
Tesla is launching a new model from China
Tesla announced on Saturday that 499,550 vehicles were delivered last year, slightly missing an implicit target of 500,000.
However, Elon Musk’s automaker set a new quarterly record with deliveries of 180,570 vehicles in the last three months of the year.
Wedbush analyst Dan Ives attributed Tesla’s strong performance in the fourth quarter to China, where the company has a plant with an annual production capacity of 250,000 vehicles, according to public reports.
“China remains a greenfield market opportunity as we believe total EV sales in the region could potentially double over the next few years as demand for EVs in all price ranges pent up,” Ives said in a statement over the weekend .
With further growth in China, Ives expects Tesla to ship 1 million units worldwide by 2022.
On Friday, Tesla announced that China-made Model Y shipments would begin at a price of 339,900 yuan. That is 30% cheaper than the originally announced cost of 488,000 yuan, according to Chinese media reports.
– CNBC’s Arjun Kharpal and Lora Kolodny contributed to this report.