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A view of Tesla Superchargers
Justin Sullivan / Getty Images
Tesla
recently published prices for the Chinese-made Model Y. It is a little more affordable than some of the competition. This is good news for Tesla bulls, but it can be bad news for the competition.
Tesla (ticker: TSLA) is selling the Model Y made in Shanghai for a base price of 339,000 Yuan or about $ 52,000. Lower price
NIO
(NIO) EC6 crossover vehicles start at 368,000 Yuan.
O
XPeng
(XPEV) G3 starts with less money, but is an underperforming vehicle. The G3 lists its time to accelerate from 0 miles per hour to 60 miles per hour in about nine seconds. A comparable Y model reaches this speed in about five seconds.
O
Li Auto
(LI) The Li ONE SUV starts at around 328,000 Yuan. “With Li ONE, we want to … become the best-selling model in its price segment, which is [the 300,000 to 350,000 Yuan] price segment, ”said Li Auto President Kevin Shen in the company’s recent earnings conference call.
Tesla, in turn, is able to cut costs by increasing local production in China. “We are also seeing benefits from the continued growth trend in cars manufactured and delivered locally, which has increased from less than 50% at the beginning of last year to more than 70% more recently,” Tesla Chief Financial Officer Zachary Kirkhorn said of the conference. all third quarter earnings.
Chinese-built Model Y was approved for sale in China in late November. Tesla also makes Model 3 sedans in China.
CEO Elon Musk said recently that it is important to continue to cut vehicle prices. “I don’t think there’s a lack of desire for our product, but it lacks an affordable price,” Musk said in a recent conference call.
Price cuts and competition have not affected EV actions. The shares of XPeng, NIO and Li Auto – along with Tesla – produced incredible returns in 2020. NIO’s shares, for example, rose about 1,110%, exceeding Tesla’s huge 743% gain.
Despite competition and stock price performance, Chinese EV shares are still popular with analysts. More than 60% of analysts covering the three companies value the shares in Buy. The average purchase rating index at Dow is around 57%.
Barron’s he is more cautious, writing recently that the ratings on Chinese EV producers are very high, while suggesting that investors make profits. This article was published in mid-December.
XPeng negotiates about 15 times the estimated sales in 2021. NIO and Li Auto negotiate about 15 times and 8 times the estimated sales in 2021, respectively. Tesla, for comparison, is traded for about 14.5 times 2021 sales.
The three Chinese EV producers are expected to report delivery numbers in the early days of 2021.
Write to Al Root at [email protected]