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A view of Tesla Superchargers
Justin Sullivan / Getty Images
Tesla
has recently released Chinese-made Model Y prices. It’s a little more affordable than some of the competitors. This is good news for Tesla bulls, but it could be bad news for the competition.
Tesla (ticker: TSLA) sells the Model Y made in Shanghai for a base price of 339,000 yuan or about $ 52,000. At a lower price
NIO
EC6 (NIO) crossover vehicles start at 368,000 yuan.
He
XPeng
(XPEV) G3 starts for less money, but is a lower performance 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 achieves this speed in about five seconds.
He
Read Auto
(LI) Li ONE SUV starts at about 328,000 yuan. “With the Li ONE, we want … to become the best-selling model in its price segment [the 300,000 to 350,000 Yuan] price segment, ”Li Auto chairman Kevin Shen said at the recent corporate earnings conference.
Tesla, meanwhile, is able to reduce costs as local production in China increases. “We also see benefits from the continued upward trend in locally manufactured and delivered vehicles, which has gone from less than 50% earlier last year to more than 70% more recently,” said Zachary Kirkhorn, chief financial officer of Tesla, to the recent company. third quarter earnings conference.
The Chinese-built Model Y was approved for sale in China in late November. Tesla also manufactures Model 3 sedans in China.
CEO Elon Musk said recently that it is important to continue reducing vehicle prices. “I don’t think we lack the desire for our product, but we do lack the affordable price,” Musk said at the recent conference call.
Price cuts and competition have not affected the actions of electric vehicles. Shares of XPeng, NIO and Li Auto, along with Tesla, produced incredible returns in 2020. Shares of NIO, for example, rose approximately 1,110%, surpassing Tesla’s huge 743% gain.
Despite competition and stock price behavior, Chinese electric vehicle stocks remain popular among analysts. More than 60% of analysts covering the three companies value Buy shares. The average purchase score ratio on the Dow is approximately 57%.
De Barron it is more cautious, recently writing that the ratings of Chinese electric vehicle producers are too high, while suggesting that investors make a profit. This article appeared in mid-December.
XPeng operates at about 15 times the sales of 2021. NIO and Li Auto change about 15 times and eight times the sales of 2021, respectively. By comparison, Tesla is trading at about 14.5 times in 2021.
The three Chinese EV producers are expected to report delivery numbers in the first days of 2021.
Write to Al Root at [email protected]