Chinese automakers trade higher on Apr delivery data, Tesla price hikes
Chinese automakers trade higher on Apr delivery data, Tesla price hikes

Chinese automakers trade higher on Apr delivery data, Tesla price hikes

Shares of automakers trade higher in Hong Kong, with GAC Group and Li Auto up more than 3%, NIO up 2.9% and BYD Company up 1.3%.

Li Auto delivered 25,681 new cars in April, setting a new record for single-month deliveries for the second consecutive month, surging 516.3% from a year earlier. Xpeng Motors delivered 7,079 vehicles in April, an increase of 1% month-on-month. NIO delivered 6,658 vehicles in April, rising 31.2% from a year earlier. GAC Aion sold 41,012 vehicles last month, surging 302% from a year earlier and up 2.5% from the previous month.

In addition, Tesla has recently raised prices in several countries including China. On May 2nd, prices of Model 3 and Model Y in China were increased by 2,000 yuan, according to Tesla’s official website. 

Some investors believe that Tesla’s price hike is good news for China’s NEV market as Tesla’s frequent price cuts in the past few months led an increasing number of potential car buyers to take a wait-and-see mode. Now the price hike by Tesla has dashed the expectation for further price reduction, which may trigger NEV price increases in China and encourage potential buyers to make purchases before possible price rises, analysts say.