Chinese electric vehicle makers NIO, XPeng, and Li Auto turned in another strong month of sales.
The February sales figures show that demand for electric cars in the world's second-largest economy remains strong, a positive for any EV maker, including Tesla. Competition, however, remains fierce.
Saturday, NIO reported 13,192 deliveries in February, up 62% year over year. Li delivered 26,263 vehicles, up 30% year over year. XPeng was even stronger: It delivered 30,453 vehicles, up 570% year over year, boosted by sales of its relatively new P7+ and MONA MO3 models.
Combined, the three delivered almost 70,000 vehicles, up 112% year over year.
EV penetration of new car sales in February should land at 53% in China, Citi analyst Jeff Chung estimated in a recent report. That is for both all-electric cars and plug-in hybrids. March penetration could be as high as 65%, he projects.
New EV launches from BYD, Geely, and Changan will boost numbers. The Chinese marketplace remains saturated with new EVs.
More competition isn't what Tesla investors want to hear. The EV maker sold roughly 34,000 cars to Chinese buyers in January, down about 12% year over year, according to the China Passenger Car Association. Tesla doesn't report monthly or regional sales volumes.
Investors want to see a sales rebound for Tesla. January numbers from the company run by Elon Musk around the globe weren't positive. According to industry data providers, sales in the U.S. and Europe fell roughly 13% and 45%, respectively. Those declines were despite overall EV growth in both regions.
Tesla is launching new driver assistance features in China and a new version of its Model Y worldwide to help boost sales. If growth fails to materialize, it will feed fears that Musk's political activities in Washington, D.C., are hurting sales.
Musk is the head of President Donald Trump's so-called Department of Government Efficiency. Traditionally, Tesla buyers have been left-leaning politically.
If sales continue to dip in February and the coming months, investors might see further evidence that Musk's political turn has damaged the brand.
Through Friday trading, Tesla stock was down about 27% year to date, while the S&P 500 was about 1%.
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