Electric vehicle selling statistics are a big deal at the beginning of every month for EV stocks. June data is still rolling in, and it shows the Chinese EV market, in particular, is as healthy as ever. That’s good news for all EV stocks, including shares of
China, after all, is the biggest market globally for EVs. But the stock market, as ever, is forward looking. So with June in the rearview mirror, stocks aren’t rising with good results. Instead, investors are asking what’s next.
The latest sales report comes from Chinese auto maker
(ticker: 1211.Hong Kong). The company reported Monday it delivered more than 41,000 new energy vehicles, or NEVs, in June, up from about 14,000 in June 2020 and up from about 32,000 in May 2021.
NEV is how China counts its zero-emission car sales. For BYD, NEVs include battery-electric cars, plug-in hybrids, and electric commercial vehicles such as buses.
It’s a big number for BYD, which likely delivered more EVs than Tesla delivered in China during the month and during the second quarter. Tesla doesn’t break down units delivered by geography. Tesla delivered about 201,000 worldwide in the second quarter. BYD sold almost 100,000 NEVs in the second quarter.
Tesla does report sales by region though. Consider Tesla generated about 21% of its sales in China during 2020. That probably works out to between 100,000 and 130,000 vehicles for 2020. (Tesla delivered about 500,000 vehicles in 2020). BYD, for comparison, delivered about 190,000 NEVs in 2020.
In the second quarter, Tesla probably delivered about 50,000 cars in China. The actual number depends on how Tesla allocated production from its Shanghai plant between Europe and China.
For BYD, Citigroup analyst Jeff Chung called the June result “excellent” in a Monday report. Year over year, as well as month to month, growth show that Chinese EV sales are, frankly, great.
BYD stock, however, is basically unchanged over the past few days, despite the strong showing. Shares are up about 18% over the past month and 26% over the past three months, though, as investors realized that Chinese EV sales were fine and not all that impacted by a global semiconductor shortage that constrained automotive production around the world.
That’s the trading pattern of other Chinese EV stocks as well.
(NIO) stock, for instance, is up about 22% and 27% over the past one-month and three-month periods, respectively. Shares are down about $2, to roughly $51, since NIO reported its strong June unit delivery number.
Tesla stock isn’t doing quite as well as NIO, but the pattern holds. It’s down about 3% over the past three months, but shares are up 11% over the past month. Shares are down roughly 2% since Tesla reported strong second-quarter deliveries on July 2.
The recent EV stock trading pattern just goes to show investors are looking for what’s next. For the Chinese EV makers and for Tesla, that will be second-quarter earnings and the delivery outlook for the second half of 2021.
BYD isn’t a go-to auto maker for some U.S. EV investors. It isn’t an all-EV auto maker which means it can fly under the radar. But it’s a significant player. Warren Buffett’s
(BRK.A) owns about 21% of BYD’s outstanding stock.
After recent gains, Tesla stock is still down about 6% year to date, trailing behind comparable numbers for the
Dow Jones Industrial Average.
Still, shares are up about 141% over the past 12 months.
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