BYD and NIO involvement: The problem is here!

Dear reader,

The stock market week is coming to an end and so are the shares of two Chinese automakers BYD and NIO could no longer form any basis. While BYD gave a little more each day, but overall it did well with a loss of around four percent, NIO had a real fall at times. After retreating to $3.74, shares failed to return to the $4 mark on Thursday in New York. But even with this, NIO has a weekly loss of around eight percent. What’s going on there?

BYD and NIO with excellent sales figures

Both manufacturers really made people sit up and take notice at the beginning of the month with their sales figures rising again. After only 122,311 deliveries worldwide in February, BYD sold almost three times as many vehicles in March, with 302,459 new vehicles hitting the road. After selling just 8,132 electric vehicles in February, NIO also increased its shipments to 11,866 units in March, an increase of 14.3 percent year-on-year. But markets and analysts remain critical considering the lackluster start to the year.

• NIO missed its sales target of 31,000 to 33,000 units for the first quarter, ending up with more than 30,000 units.
• BYD had only 300,114 electric cars, and experts also expected high delivery figures here.

NIO shares have lost half their value

The situation in the stock market is particularly surprising for NIO. While the main competitor BYD has also weakened recently, but is still almost maintaining the price level since the beginning of the year, things are different for NIO. The startup that took the biggest loss from the premium segment has lost no less than half of its market value since the beginning of the year.

Nio Aktie chart

This may not be a coincidence: Experts identified shortages as a major problem in the electric vehicle industry, as can be seen in the example of Tesla, as Holger Zschäpitz from the WELT business editorial team said recently on the podcast “Everything in stock. “The fall in the sector’s prices also reflects the confusion of investors that growth expectations were overestimated in the hype, and the sharp decline is causing problems for producers,” the administrator was quoted as saying on finanzen.net. In fact, according to Handelsblatt’s analysis, electric car manufacturers have lost almost $1 trillion in value on the stock market since 2021. And new providers like Xiaomi are also shaking up the market with throwaway prices.

BYD announced the best battery

All the good news has finally broken out, including in BYD: The manufacturer is now ready to present the next generation of batteries, it was said this week on motorsport-total.com. Wang Chuanfu, CEO of BYD, announced the second generation of blade batteries, which will enter the market in August “and have an energy density 26.6 percent higher than the current one thanks to a series of design improvements and a new chemistry 150 Wh/kg up to 190 Wh. /kg”. In standard versions this will reach a distance of 1,000 km: “A real record for the LFP package,” they say.