Electric vehicle stocks are starting to accelerate again.
Especially in China, where subsidies and consumer incentives are driving EV sales.
Look at Nio (SYM: NIO), for example.
Why are EV’s coming back strong?
After a disastrous few months, the electric vehicle stock is coming back strong. Last trading at $5.39, if it can break above resistance at $6, it could retest $8 shortly.
Helping, the company just said it delivered 20,544 cars in May, up 234% year over year. Nio also said it delivered 66,217 vehicles to date, a 51% jump year over year. We’ll also get a better view of the company when it posts first quarter earnings on Thursday, June 6.
Even better, JPMorgan recently upgraded NIO to a neutral rating from underweight. “The firm pointed to new initiatives and near-term events in turning more constructive on the upside. In particular, NIO is seen benefiting from its battery service strategy and the Chinese government’s policy to boost auto demand,” added Seeking Alpha.
Or, look at BYD (SYM: BYDDF), which has also turned aggressively higher on strong sales.
In May, the company delivered 330,488 passenger vehicles, including 146,395 battery EVs, and 184,093 plug-in hybrid models. “So far in 2024, BYD has sold 1,266,934 cars, up 27% compared with the same span of 2023. BEV sales totaled 580,974, up 19%. PHEV sales totaled 685,960, up 35%,” said Barron’s.
Even Li Auto (SYM: LI) is seeing strong numbers.
In May, the company delivered 35,020 vehicles, up 23.8% year over year.
“We have delivered over 15,000 Li L6s since deliveries began on April 24, setting a record pace for our newly launched models. Sales of the 2024 Li L7, Li L8, and Li L9 continue to gain momentum, driven by the new pricing strategy we implemented,” commented Xiang Li, chairman and chief executive officer of Li Auto.
“Our market share in the RMB200,000 and higher NEV market continues to experience healthy year-over-year growth, expanding to 13.5% for the period between January to April and strengthening our top position among Chinese auto brands.
