To The Moon

On November 1, China EV maker released its October sales data. One company may be wandering on the brink of collapse.

• $NIO Inc.(NIO)$ sold 10,059 units in October, up 174.3% year-on-year and down 7.5% sequentially.
• $XPeng Inc.(XPEV)$ October sales of 5,101 units, down 49.7 percent year-over-year.
• $Li Auto(LI)$ 's October sales of 10,052 units, up 31.4 per cent year-on-year and down 12.8 per cent sequentially.
• $ZHEJIANG LEAPMOTOR TECHNOLOGY CO., LTD.(09863)$ sold 7,026 units in October, down 36% year-over-year

XPeng sales collapsed. Its new model G9 started mass deliveries in late October, but it seems to have had little pulling effect on sales.

Even with a variety of models including P7\P5\G3\G9, the monthly sales figure was still very poor- only 5,000, compared to Li Auto's single model sales of over 10,000.

If there are no more explosive models in the near future, XPeng might be the first new energy company to go out of business, and the money will eventually be depleted.

Nio's monthly sales are not good either.

The year-on-year figures are up 174%, but the main reason is the unusually low sales in October last year. Compared to previous monthly sales of over 10,000 units, October's delivery figures are still stuck at 10,000 units, which doesn't improve much.

Leapmotor's sales in September and October declined sequentially month over month. 

As its models are positioned for the masses, it may be affected by fierce competition.

To sum up, the sales figures of new energy vehicles in October are not very bright.

In October, Tesla lowered the price of its main models. Lithium battery prices are soaring, and Chinese new energy vehicle companies have low gross margins. If the price war begins, investors of these companies may suffer.

Here are the historical sales data of each company, which can show the plight of Chinese new energy car companies from the trend.

1) Nio: has struggled to reach higher volumes since sales broke 10,000 in September 2021.

Nio noted in its October sales report that the plant shutdown due to the pandemic had a negative impact on deliveries.

2) XPeng: Sales have fallen off significantly since August and share price also plummeted.

Going forward, XPeng desperately needs a breakout model to prove itself.

3) Li Auto: the first model was a hit, and the L9 proved its success in products.

With the enrichment of models, Li Auto's future is still promising.

4) Leapmotor: It just listed in HK stock market, and its October sales are second worst only after XPeng.