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Or see the Tesla Superchargers
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recently posted prices for the Y model made in China. It’s a little more affordable than some of the competition. This is good news for Tesla bulls, but it could be bad news for competition.
Tesla (ticker: TSLA) sells the Shanghai-made Model Y at a base price of 339,000 yuan or about $ 52,000. At lower prices
NIO
(NIO) EC6 crossover vehicles start at 368,000 yuan.
XPeng
(XPEV) G3 starts for less money, but it is a vehicle with lower performance. The G3 lists its acceleration time 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.
Read Auto
(LI) Li ONE SUV starts at about 328,000 yuan. “With Li ONE, we want to … become the best-selling model in its price segment [the 300,000 to 350,000 Yuan] the price segment, ”said Li Auto President Kevin Shen at a recent earnings conference call.
In turn, Tesla is able to reduce costs as it increases local production in China. “We are also seeing benefits from the continuing upward trend in locally built and delivered cars, which rose from less than 50% early last year to more than 70% most recently,” said Tesla Chief Financial Officer Zachary Kirkhorn. for the recent three-quarter earnings conference companies all.
The Chinese-built Model Y was approved for sale in China in late November. Tesla also produces Model 3 sedans in China.
CEO Elon Musk recently said it is important to continue to reduce vehicle prices. “I don’t think we lack the desire for our product, but we lack the accessibility,” Musk said at the recent conference.
The reduction in prices and competition did not affect EV stocks. Shares of XPeng, NIO and Li Auto – along with Tesla – produced incredible returns in 2020. NIO shares, for example, grew by about 1,110%, surpassing Tesla’s huge gain by 743%.
Despite competition and stock price performance, EV shares in China are still popular with analysts. Over 60% of analysts covering all three companies evaluate shares in Buy. The average purchase rate in the Dow is about 57%.
Barron’s he is more cautious, he recently wrote that the ratings of Chinese electric vehicle manufacturers are too high, while suggesting that investors take profits. The article appeared in mid-December.
XPeng trades for estimated sales about 15 times in 2021. NIO and Li Auto trade approximately 15 times, respectively, 8 times the estimated sales in 2021, respectively. For comparison, Tesla trades sales approximately 14.5 times in 2021.
The three Chinese electric vehicle manufacturers are expected to report delivery numbers in the first days of 2021.
Write to Al Root at [email protected]