Shares of Chinese electric vehicle (EV) companies, including BYD (BYDDF) (HK:1211), Nio (NIO) (HK:9866), and XPeng (XPEV) (HK:9868), are declining on Friday after American rival Tesla (TSLA) posted record Q3 deliveries. Tesla delivered 497,099 autos in the September quarter, far exceeding analysts’ estimates of 439,800 vehicles, and representing a 7.4% growth from the same period last year.
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This spike in demand was likely driven by a last-minute rush from U.S. buyers as they tried to capitalize on the $7,500 federal EV tax credit before it expired on September 30. Despite the record, TSLA stock fell 5.1% yesterday, as investors questioned whether the figure reflected sustainable demand or merely a one-off pull-forward of sales.
NIO, BYD, XPEV Fear Tesla’s Comeback
Tesla’s stronger-than-expected results have raised concerns among investors in Chinese EV companies, who are wary of renewed competition from the U.S. giant. BYD, which has steadily overtaken Tesla as the world’s top EV seller in recent quarters, saw its stock post the steepest decline.
Tesla launched its new six-seater Model Y in China last month to push sales higher and recapture a larger share in its second-largest market. The company is struggling with an aging auto line-up, heated price war, and intensifying competition from local brands.
Meanwhile, rival BYD’s stock continued with its two-day decline since its monthly sales fell for the first time since 2020. BYD’s September sales volume for new energy vehicles (NEVs) declined 5.5% year-over-year to 396,270 units.
Conversely, some of BYD’s domestic peers posted healthy monthly growth. XPeng delivered 25,400 vehicles in September, a 95% year-over-year surge fueled by strong demand for its G6 SUV and upgraded P7 sedan. Nio delivered 20,500 units, a 64% increase driven by premium models and a growing charging network.
Tesla is also catching up on its lost sales in Europe, with France and Denmark leading the sales growth. Tesla’s comeback underscores the vulnerability of Chinese EV stocks, which rely heavily on continued sales growth. With narrowing margins, policy headwinds, and rising global competition, Chinese automakers must prove they can keep up momentum.
Which Is the Best EV Stock, According to Analysts?
We used the TipRanks Stock Comparison Tool for Best EV Stocks to determine which company is currently preferred by analysts.
On TipRanks, only BYD has a “Strong Buy” consensus rating currently, with BYDDF stock offering an impressive 77% upside potential from current levels.
