From Investor’s Business Daily:

Chinese EV makers BYD, Li Auto, Nio, and XPeng reported sharp drops in EV deliveries in February for the second month in a row. Despite this, most Chinese EV stocks rose, and Li Auto stock returned to the buy zone.

Li Auto launched its first purely battery-electric vehicle, the Mega minivan, expecting to drive a delivery rebound in March. The competitive Chinese EV market faces an intensified price war, impacting sales and production capacity.

BYD, Li Auto, Nio, and XPeng all reported significant decreases in EV deliveries in February. Li Auto is expanding its lineup with new models and hybrids, expecting to see a rebound in deliveries to 50,000 units in March.

Li Auto’s stock price fluctuated within range, following its breakout from a double-bottom base. The company’s impressive fourth-quarter earnings report led to a strong stock performance, with shares up approximately 25% for the week.

Li Auto introduced the Mega BEV to address multi-generational needs and range anxiety with BEVs, challenging BYD and Tesla in the Chinese market. BYD initiated a price war on its EV models, following Tesla’s price cuts.

The EV price war in China has extended to budget and mid-to-high end models, with automakers offering significant tech upgrades at reduced prices. Cheaper batteries have helped offset some price cuts, but companies face possible margin pressure.

BYD, Li Auto, Nio, and XPeng are innovating and competing fiercely in the Chinese EV market, facing challenges from each other and global competitors like Tesla. Expectations are high for a rebound in sales and continued growth in the coming months.



Read more at Investor’s Business Daily: Li Auto In Buy Zone As It Takes A Mega Shot At BYD, Tesla| Investor’s Business Daily