To The Moon

🌟🌟🌟$NIO Inc.(NIO)$  is the Star Performer this week with its share price up 19%.    This is due to its strong delivery growth in April.  Nio has surprisingly outperformed $Li Auto(LI)$  and $XPeng Inc.(XPEV)$  in deliveries last month.

Nio delivered 15,620 vehicles in April, up 31.64% from March and up a huge 134.6% year on year.  The deliveries included 8,817 SUVs and 6,803 sedans.

Nio currently sells 8 models.  They are ES8, ES7, ES6, EC7, EC6, ET7, ET5, ET5 Touring of which the first 5 are SUVs and the last 3 are sedans.   Deliveries of ET9 sedan launched in December will begin in Q1 25.

In contrast Li Auto delivered 25,787 vehicles in April, up just 0.41% year on year but down 11% from March. 

XPeng delivered 9,383 vehicles in April, up 32% year on year and up 4% from March. 

Nio's better delivery growth could possibly be due to its more attractive battery rental service BaaS which it launched in mid March in response to the price war. 

In contrast XPeng, which primarily target the mass market, has been hit by the price war.  Li Auto has been dragged down by the slow initial acceptance of Li Mega MPV and the 2024 models. 

What Nio did in March 14 was to lower the monthly fee of its BaaS battery rental service.  This was one of the major barriers that had  previously prevented potential customers from opting for the service. 

Nio is offering 2 ways to purchase its vehicles.  One way is to buy the entire vehicle including the battery pack just like any other EV.  Another way is to buy just the vehicle body and rent the battery which is known as the BaaS program. 

If a customer chooses to purchase a vehicle under the BaaS program, the purchase price will be lowered by at least RMB 70,000 or USD 9700.

This is a brilliant strategy as it makes it more attractive for customers to pay less upfront. 

In comparison XPeng has to continue its discounts on a number of models due to the intense price war. 

Li Auto's model, Li Mega launched on March 1 has not been so popular and has significantly underperformed expectations. 

However Li Auto has launched a lower cost Model the Li L6 on April 18 offering Pro and Max trims with prices starting at RMB 249,800 and RMB 279,800 respectively, making it the least expensive model. 

According to Li Auto, orders for Li L6 exceeded 20,000 units, just 12 days after its launch.  Li Auto now expects to sell between 560,000 and 640,000 units for the full year of 2024, down from the previous target of 650,000 to 800,000.

Nio is expected to launch its mass market sub brand Onvo in mid May while XPeng will launch its new brand MONA in June.  MONA stands for Made Of New AI. 

$XIAOMI-W(01810)$  delivered 7058 SU7 vehicles in April, having started its first deliveries on April 3.  Xiaomi's launch of SU7, its first EV model on March 28 was a huge success.  It has now received 88,063 locked in orders for the SU7 as at April 30.

Xiaomi is targeting monthly deliveries of more than 10,000 units of SU7 in June according to Lei Jun, Chairman and CEO. 

$BYD COMPANY(01211)$  saw further sales growth in April which was the 2nd highest on record.  BYD sold 313,245 new EVs iin April, up 48.9% from the same month last year and up 3.5% from 302,459 in March. 

In April BYD sold a record 41,011 vehicles in overseas markets, surpassing March's previous record of 38,434.  That is up 176% year on year and 6.7% from March. 

BYD is China's largest EV company and also China's 2nd largest power battery maker. 

China leads the world with the 58% market share in the EV markets.  BYD, Nio, XPeng, Li Auto and Xiaomi represent the best Chinese EV companies due to their continued innovation and technological advances.  Elon Musk, CEO of Tesla  said that Chinese car companies are the most competitive car companies in the world. It is time for Chinese EV companies to shine. 

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