Latest news with #OnvoL60
Economic Times
15-05-2025
- Automotive
- Economic Times
Tesla rejoins the $1 trillion club, but troubling China data sparks investor doubts about what's really driving growth
Sharp Drop in Tesla Sales in China Live Events Stagnant Product Line Rising Competition from Chinese EV Brands FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Tesla might have regained its $1 trillion market capitalization this week, but a worrying trend is starting to appear in China, Tesla's most significant latest insurance data from China showed a decline in Tesla's weekly sales, triggering new fear among investors already on edge about the company's performance, as per a the week ended May 11, Tesla delivered only 3,070 cars in China, 58% fall from the prior week, and 69% below from a year ago, reported Fortune. Most of that drop was in the Model Y, Tesla's best-selling model worldwide, which reported just 1,270 units sold, its lowest point since it went on sale in China, according to the a firm that has China as its sole largest market, which is larger even than the United States, these figures are a red flag. Roland Pircher, who regularly tracks Tesla's international EV sales, said, 'Something is definitely going on in China,' quoted READ: Warren Buffett breaks hearts and silence, reveals the deeply personal reason behind his emotional exit from Berkshire Hathaway CarNewsChina reported that Tesla's plan to stick with the same lineup of vehicles and provide just incremental updates is beginning to fail in China. Regardless of how many incentives or discounts the company includes, it's increasingly difficult to persuade buyers, particularly those who have been waiting for a more thrilling update of the Model Y, as per the report. Numerous potential buyers do not find it to be of compelling value to purchase what is ultimately a five-year-old vehicle, as per Chinese companies such as Xpeng G6, Onvo L60, Li Auto L6, BYD Sealion 7 and Zeekr 7X are performing way better than Tesla because the domestic brands innovate at 'China speed', according to the report. This means that these companies have reduced development cycles on new models to just two to three years from the industry standard of six to seven, as per READ: Working 7 days a week comes with solid perks: Nvidia executives earn millions - here's how much CEO Jensen Huang pockets CarNewsChina wrote, 'Competition in the Middle Kingdom is simply too much,' adding, 'Young Chinese buyers don't have the fear of buying Chinese products like their parents, who still remember the 90s. The lack of new models is finally hurting Tesla in China.'Yes. Tesla's sales dropped due to declining demand, especially for the Model Y, which saw a sharp decrease in sales, as per automakers are speeding up their innovation cycles to just 2-3 years, while Tesla takes much longer to refresh its models.
Time of India
15-05-2025
- Automotive
- Time of India
Tesla rejoins the $1 trillion club, but troubling China data sparks investor doubts about what's really driving growth
Tesla might have regained its $1 trillion market capitalization this week, but a worrying trend is starting to appear in China, Tesla's most significant market. Sharp Drop in Tesla Sales in China The latest insurance data from China showed a decline in Tesla's weekly sales, triggering new fear among investors already on edge about the company's performance, as per a report. For the week ended May 11, Tesla delivered only 3,070 cars in China, 58% fall from the prior week, and 69% below from a year ago, reported Fortune. Most of that drop was in the Model Y, Tesla's best-selling model worldwide, which reported just 1,270 units sold, its lowest point since it went on sale in China, according to the report. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Treatment That Might Help You Against Knee Pain Knee pain | search ads Find Now For a firm that has China as its sole largest market, which is larger even than the United States, these figures are a red flag. Roland Pircher, who regularly tracks Tesla's international EV sales, said, 'Something is definitely going on in China,' quoted Fortune. ALSO READ: Warren Buffett breaks hearts and silence, reveals the deeply personal reason behind his emotional exit from Berkshire Hathaway Live Events Stagnant Product Line CarNewsChina reported that Tesla's plan to stick with the same lineup of vehicles and provide just incremental updates is beginning to fail in China. Regardless of how many incentives or discounts the company includes, it's increasingly difficult to persuade buyers, particularly those who have been waiting for a more thrilling update of the Model Y, as per the report. Numerous potential buyers do not find it to be of compelling value to purchase what is ultimately a five-year-old vehicle, as per CarNewsChina. Rising Competition from Chinese EV Brands Meanwhile, Chinese companies such as Xpeng G6, Onvo L60, Li Auto L6, BYD Sealion 7 and Zeekr 7X are performing way better than Tesla because the domestic brands innovate at 'China speed', according to the report. This means that these companies have reduced development cycles on new models to just two to three years from the industry standard of six to seven, as per CarNewsChina. ALSO READ: Working 7 days a week comes with solid perks: Nvidia executives earn millions - here's how much CEO Jensen Huang pockets CarNewsChina wrote, 'Competition in the Middle Kingdom is simply too much,' adding, 'Young Chinese buyers don't have the fear of buying Chinese products like their parents, who still remember the 90s. The lack of new models is finally hurting Tesla in China.' FAQs Did Tesla's sales drop in China? Yes. Tesla's sales dropped due to declining demand, especially for the Model Y, which saw a sharp decrease in sales, as per Fortune. How fast are Chinese automakers innovating compared to Tesla? Chinese automakers are speeding up their innovation cycles to just 2-3 years, while Tesla takes much longer to refresh its models.
Yahoo
16-03-2025
- Automotive
- Yahoo
Could Buying Nio Stock Today Set You Up for Life?
Nio (NYSE: NIO) has been a wildly volatile stock since its IPO in 2018. The Chinese maker of electric vehicles went public at $6.26 per share, and it skyrocketed tenfold to a record high of $62.84 during the buying frenzy in meme stocks in February 2021. However, as of this writing, Nio's stock trades at about $5 per share. The bulls retreated as its deliveries cooled off, its margins shrank, and it racked up steep losses. Could scooping up some shares of this unloved stock below its IPO price help set you up for life? Nio produces a wide range of electric sedans and SUVs. It differentiates itself from its competitors with its swappable batteries, which can be quickly replaced at its own battery swapping stations as a faster alternative to traditional chargers. Nio delivered its first vehicles in 2018, and its annual deliveries surged nearly 11-fold from 2019 to 2024. But after more than doubling its annual deliveries in 2020 and 2021, its deliveries decelerated significantly in 2022 and 2023 as it struggled with supply chain constraints, tougher competition, and China's economic slowdown. Metric 2019 2020 2021 2022 2023 2024 Deliveries 20,565 43,728 91,429 122,486 160,038 221,970 Growth (YOY) 81% 113% 109% 34% 31% 39% Data source: Nio. YOY = Year over year. Nio's annual vehicle margin, which had reached a record high of 20.2% in 2021, also shrank to 13.7% in 2022 and 9.5% in 2023 as its pricing power waned. Its annual net loss more than quadrupled from 2021 to 2023. All of those challenges -- along with trade tensions and rising interest rates -- drove away bulls. After two years of slowing growth, Nio's growth in deliveries accelerated again in 2024. Its business stabilized as it grew its market share in China and expanded in Europe. That recovery was driven by its stable sales of its ET sedans, ES SUVs, and EC crossovers, as well as the launch of its lower-end Onvo L60, which resembles Tesla's (NASDAQ: TSLA) Model Y but starts at just 149,900 yuan ($20,646). It also continues to expand across Europe even as it faces higher tariffs on Chinese-made EVs across the region. But despite that pressure, Nio's quarterly vehicle margins stabilized in 2024, growing from 9.2% in the first quarter to 12.2% in the second quarter and 13.1% in the third quarter. It expects that figure to rise again to 15% when it posts its fourth-quarter earnings report on March 21. It attributes that recovery to its lower material costs and its rising sales of premium vehicles (including its ET7 Executive Edition sedan) in China, which largely offset its lower average selling prices. Last December, Nio launched the Firefly, a compact electric hatchback that targets buyers of smaller vehicles like BMW's (OTC: BAMXF) Mini, with a starting price of just 148,800 yuan ($20,495). It also intends to launch the Firefly in Europe this year, and it could localize some of its production to the EU in the future to counter tariffs. Assuming Nio's deliveries and vehicle margins continue rising, analysts expect its revenue to grow at a compound annual growth rate (CAGR) of 30% from 2023 to 2026 as it roughly halves its annual net loss. Nio won't turn a profit anytime soon, but it's still subsidized by the Chinese government and had $6 billion in cash and equivalents at the end of its latest quarter. With an enterprise value of 76.9 billion yuan ($10.9 billion), Nio still trades at less than 1 times its projected sales of 97.6 billion yuan ($13.5 billion) for 2025. By comparison, Tesla trades at 6 times its projected sales for 2025. Nio's valuations are likely being squeezed by persistent tensions between the U.S. and China, threats of higher tariffs, and concerns about the cooling EV market. But if those pressures ease as Nio scales up its business, it could be revalued as a growth stock again and deliver big multibagger gains from its current prices. So, while it's still too early to tell if Nio could "set you up for life" over the long term -- an unlikely feat for any one stock -- it could be a high-risk, high-reward play for bold investors. Nio hasn't proved that its business model is sustainable or that it can generate consistent profits, but it's an attractive stock to buy if you expect the trade tensions to wane and the EV market to warm up. Before you buy stock in Nio, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nio wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $745,726!* Now, it's worth noting Stock Advisor's total average return is 830% — a market-crushing outperformance compared to 164% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 14, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Bayerische Motoren Werke Aktiengesellschaft. The Motley Fool has a disclosure policy. Could Buying Nio Stock Today Set You Up for Life? was originally published by The Motley Fool Sign in to access your portfolio
