Equities
Nio's shares surge 20% as April EV deliveries double, intensifying competition in China's electric vehicle market.
By Bill Bullington
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Shares of Nio Inc experienced a significant surge, climbing 20% on Thursday, following the announcement of their vehicle delivery numbers for April. The company reported a 134.6% year-on-year increase in vehicle deliveries, totaling 15,620 vehicles for the month. This figure includes 8,817 premium smart electric SUVs and 6,803 premium smart electric sedans. The substantial increase in deliveries contributed to Nio's shares reaching their highest level in over six weeks on the Hong Kong stock exchange, peaking at 44.20 Hong Kong dollars. Additionally, Nio's performance has positively impacted the broader Hang Seng index, which saw a 2% increase by midday trading. Year-to-date, Nio has delivered a total of 45,673 vehicles, marking a 21.2% increase compared to the same period last year. The company's efforts to expand its battery swap partnerships are part of a strategic move to enhance the electric vehicle (EV) ecosystem and alleviate consumer concerns regarding driving range.
The Chinese EV market is witnessing intense competition among local manufacturers and international players like Tesla. Other Chinese EV makers, such as Li Auto, Xpeng, and BYD, also reported their April delivery numbers. Li Auto saw a decrease in deliveries by 11% from March, delivering 25,787 vehicles in April, while Xpeng delivered 9,393 EVs, a 4% increase from the previous month. BYD reported a sales volume of 313,245 EVs in April, a 3.6% increase from March. Despite the mixed performance, shares of these companies saw increases, with Xpeng's shares jumping 7.5% and BYD's shares rising by 5%.
The Chinese EV market is currently embroiled in a price war, primarily driven by the competition with Tesla, the U.S. automaker. In response to the competitive pressures, major EV manufacturers have been reducing their vehicle prices. Tesla recently lowered the starting price of its Model 3 in China and other significant markets. Similarly, Li Auto adjusted the prices for several of its models. The entry of Chinese smartphone maker Xiaomi into the EV market has further intensified the competition. Xiaomi launched its electric car, the SU7, priced approximately $4,000 less than Tesla's Model 3, and boasts a longer driving range. Xiaomi's CEO, Lei Jun, reported that the new EV is selling better than expected and anticipates the company will reach a break-even point sooner than initially projected, despite its lower pricing strategy compared to Tesla's Model 3.
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