NIO Inc NIO shares are trading lower Wednesday. The stock appears to have faced selling pressure in recent weeks due to strong sales numbers from China-based EV competitors. BYD Co Ltd BYDDF on Wednesday said it expects net income to surge this quarter on record sales.
What To Know: Last week, the China Passenger Car Association released new data showing that Warren Buffett-backed BYD is dominating China's EV market.
According to Fortune, BYD delivered 286,903 vehicles in September, up 40% year-over-year. Although Nio also turned in similar growth numbers on a year-over-year basis, the EV maker's total deliveries were well behind BYD.
Nio recently noted that it delivered 15,641 vehicles in September. Deliveries for the third quarter totaled 55,432 and cumulative deliveries climbed to 399,549, but BYD delivered more than 286,000 vehicles just last month and is growing at about the same rate as Nio.
On Wednesday, BYD said it expects third-quarter net income to be between 9.5 billion yuan ($1.3 billion) and 11.6 billion yuan and highlighted record sales for the period. The company also said it expects margins to remain resilient despite recent price wars among EV makers.
Nio lost about $35,000 per vehicle last quarter as it continues to invest in research and development. BYD is by far China’s best-selling car brand and nearly surpassed overall EV leader Tesla in sales this quarter.
NIO Price Action: Nio shares were down 5.51% at $8.06 at the time of publication, according to Benzinga Pro
Photo: courtesy of Nio.
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