August Figures Reveal Surging Demand For EVs

Last week, Li Auto Inc LI posted a widened second-quarter loss as a cost of selling EVs took a toll but revenue managed to beat expectations as deliveries nearly tripled. Moreover, the automaker provided an upbeat outlook for Q3 that anticipates outselling its rival Nio Inc NIO that increased its YoY sales but is not able to keep up with demand.

Xpeng Inc XPEV reported it delivered 7,214 vehicles in August, which is a 172% YoY increase and BYD Company Limited BYDDF saw its August sales surge more than 300%.

Li Auto- Q2 Figures

During the second quarter, losses narrowed to $10.1 million, on a per-ADS basis, resulting Li in one-cent lost. Revenue was fueled by higher deliveries and consequently jumped 159% YoY as it amounted to $780.4 million. Earlier, Li Auto disclosed selling 17,575 Li One SUVs, a hybrid-electric vehicle and the only one it has on the market, during the quarter which marked a quarterly record. Free cash flow amounted to $152.1 million.

Li Auto- Q3 Outlook

For Q3, deliveries are expected in the range between 25,000 and 26,000, representing an increase of 189% to 200% compared to 2020's quarter. Revenue is expected in the range between $1.08 billion and $1.12 billion which would be an increase of 178% to 189% compared to last year's figures. But those predictions depend on market conditions and the ongoing global semiconductor shortage.

Nio forecasted Q3 vehicle deliveries to be up 88% to 105% with revenue in the range between $1.38 billion and $1.49 billion, up 97%-113% compared to last year's figure.

August Figures

Li Auto delivered 9,433 units of its Li ONE, the only model it has on the market which is a 9.8% increase from July. Although volume production kicked off in November 2019, a refreshed 2021 version was released this May.

Chip supply shortages lowered both Nio and Xpeng's August deliveries. Nio delivered 5,880 vehicles which is a drop from July's 7,931 caused by uncertainty and volatility of the crisis. The third-quarter delivery forecast was also cut from between 23,000 to 25,000 vehicles to between 22,500 to 23,500 units as the shortage is set to continue. But Nio revealed new orders reached an all-time high in August.

Xpeng delivered 7,214 vehicles which is also a drop from July's 8,040 as it transitioned manufacturing at one of its factories.

Li Auto was the only company out of the three to register month-on-month growth but all three delivered under 10,000. Meanwhile, BYD sold 61,409 new EVs in August, split evenly between battery-electric and plug-ins. Although this is not an apple-to-apple comparison as BYD reported vehicles sold whereas Nio, Li Auto, and XPeng released the number of delivered vehicles, it does indicate the scale that favors Warren-Buffet-backed EV manufacturers.

The EV Environment

The global chip shortage as well as the ongoing pandemic continue to hit automakers and even the EV leader Tesla is not immune as Elon Musk warned that deliveries of its new Roadster will be delayed until 2023. Meanwhile, the three Chinese EV startups are challenging both Warren-Buffet-backed BYD as well and the industry leader Tesla Inc TSLA  in China, the world's largest EV market. They're also ramping in Norway, a booming EV market where Tesla dominates – for now.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact:

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