Three Chinese electric vehicle (EV) companies — Li Auto (NASDAQ:LI), Xpeng (NYSE:XPEV) and Nio (NYSE:NIO) — have reported . Overall, it was good news.
Li Auto, which makes plug-in hybrids, led the way with , up some 300% from a year ago. Meanwhile, Xpeng said it delivered 20,002 electric vehicles, also up nearly 300% from a year ago.
Nio, which is already exporting cars to Europe, came in third among the companies for Chinese EV deliveries. The company delivered , a roughly 60% increase year-over-year (YOY). A year ago, Nio delivered 10,059 vehicles.
Why Li Auto Leads
The reaction to these numbers on Wall Street has been somewhat restrained. Li Auto is up over 3% as of this writing. Meanwhile, Xpeng is up nearly 4% and Nio is down 0.2%. Tesla (NASDAQ:TSLA) is down nearly 1% as well. The stock market opened flat today after the U.S. Treasury announced that it is offering in securities later this month.
As I have been reporting, Li Auto has become a standout in this group of Chinese EV stocks. The firm outsold Tesla in China during October, based on registrations. Tesla saw over in China during the month, although many of its Shanghai plant’s cars are exported.
Investors have been looking to Chinese EV companies all year for signs of how the U.S. market may evolve. According to CleanTechnica, plug-in vehicles should have about 40% market share in China . The EV market in China is led by BYD (OTCMKTS:BYDDF), which specializes in mid-market vehicles.
The U.S. EV market doesn’t have much in the way of mid-priced competitors, save General Motors’ (NYSE:GM) Chevy Bolt. However, hybrids from companies like Toyota (NYSE:TM) are selling well, just as Li Auto is in China. Higher-end EVs are said to be in glut, with Ford (NYSE:F) delaying a battery plant .
Europe is for the mass entry of Chinese EVs into that market. BYD looks like it will be the primary competitor. Meanwhile, Nio is building a dealer network for its lower-priced , which will debut next year.
What Happens Next?
Tesla remains the world’s most valuable car company. But China is taking control of its home auto market — and may be coming for the rest of the world’s.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
