BYD's Domestic Sales Plunge. China's Car Market Continues to Struggle.

Dow Jones
2 hours ago

The Chinese car market continues to struggle, making it difficult for many EV stocks, including Tesla.

Tuesday, Chinese EV leader BYD announced August delivery results. It sold 433,384 electrified cars, including 256,230 all-electric vehicles. (BYD also sells plug-in hybrids.) Passenger vehicle sales grew 21% year over year, but that was on export strength. BYD exported 189,466 vehicles, up 125% year over year. Domestic sales of about 244,000 cars fell 24% year over year.

Year to date, BYD's domestic sales are down about 33% year over year. Chinese EV makers have had to look overseas amid brutal competition, slowing demand growth, and lower government EV incentives.

BYD stock was up 1.2% in overseas trading after reporting numbers, leaving shares down 23% over the past 12 months.

NIO delivered 35,836 cars in August, up 14% year over year. NIO's sales have bounced back this year, with new models helping. Year to date, NIO has sold 262,893, up 58% year over year. Growth hasn't helped shares much. NIO stock was down 6.4% in overseas trading on Tuesday, leaving shares down 39% over the past 12 months.

XPeng delivered 39,107 cars, up 4% year over year, bringing year-to-date sales to 243,111, down 10% year over year. XPeng stock was down 1% in overseas trading, leaving shares down 47% over the past 12 months.

Li Auto delivered 37,679 vehicles, up 32% year over year, bringing year-to-date sales to 261,619, roughly flat year over year. Li stock was down 1.6% in overseas trading, leaving shares down 49% over the past 12 months.

The four companies delivered about 546,000 cars in August, up 8% year over year. BYD domestic sales, combined with the other three auto makers, fell 18% year over year.

Sales data show that the Chinese car market continues to struggle. China is the largest market for new cars and new EVs. It's also one of the most important markets for Tesla. Investors, however, haven't been focused on Tesla car sales lately. They are more interested in its AI efforts, including robo-taxis and robots. Coming into Tuesday trading, Tesla stock was up about 10% over the past 12 months.

 

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