Globally, $Tesla Motors(TSLA)$ leads all others, selling 936,000 units in 2021 (giving the company a market share of ~14%). Close behind was the Volkswagen Group (11%), BYD (9%), GM (7.6%) etc.
Although China has the biggest market for EVs at 34%, there's price war among the different EVs and you can see that most of the China's EV companies are not making significant progress in their car deliveries. Taking XPeng as an example, since hitting the peak of 16k car deliveries in Dec 2021, the number has been decreasing and mostly remained stagnant at around 10k.
For Q3 22, Xpeng delivered
Jul22 - 11,524 cars
Aug22 - 9,578 cars
Sep22 - 8,468 cars
Clearly, it's a challenging to scale up the car deliveries exponentially. Since the peak deliveries of 16k in Dec 2021, the monthly car delivery is on a downtrend. Furthermore, the competition in the EV market has intensified as numerous traditional car markers (Mercedes-Benz, BMW etc) are also investing and building more EV units. Hence, I think the downside will be more for China EV companies (such as XPeng, Nio and Li Auto). The price of raw material for EV battery, lithium, has been soaring to new highs! The price war with Telsa would also lead to lower profit margin! With increasing interest rate hikes, I doubt people would be splashing more money to buy new cars!!
The outlook for $XPeng Inc.(XPEV)$ Q4 delivery is only at 20k. It's insignificant as compared to Tesla's 300+k per quarter and Ford's 100+k EV per quarter.
Furthermore, Elon Musk has been cashing out from his Tesla positions at $200+ (it's heading below $100 now!!) while Warren Buffett has trimmed his stake in BYD!! What do you think? Let me know your thoughts!!
@Daily_Discussion @TigerStars @CaptainTiger @MillionaireTiger
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
up