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A View of Tesla Superchargers
Justin Sullivan / Getty Images
Tesla
recently posted prices for the Chinese-made Model Y. It’s a little more affordable than some of the competitions. This is good news for Tesla bulls, but it could be bad news for the competition.
Tesla (ticker: TSLA) sells the Model Y manufactured in Shanghai for a base price of 339,000 Yuan or about $ 52,000. Lower price
NIO
(NIO) EC6 crossover vehicles start at 368,000 Yuan.
The
XPeng
(XPEV) G3 starts for less money, but it is a vehicle with a lower performance. The G3 gives its time to accelerate approximately nine seconds from 0 miles per hour to 60 miles per hour. A similar model Y reaches the speed within about five seconds.
The
Li Auto
(LI) Li ONE SUV starts at about 328,000 Yuan. ‘With the Li ONE we want … the top-selling model to be in its price segment [the 300,000 to 350,000 Yuan] price segment, ”said Li Auto’s president Kevin Shen during the recent earnings conference call to the companies.
Tesla, in turn, can save costs as it increases local production in China. “We are also seeing benefits from the continued upward trend of cars being built and delivered locally, increasing from under 50% at the beginning of last year to more than 70% recently,” said Tesla CFO Zachary Kirkhorn about the recent company. earnings conference third quarter all.
The Chinese-built Model Y was approved in China at the end of November. Tesla also makes Model 3 sedans in China.
CEO Elon Musk recently said it was important to continue lowering vehicle prices. “I do not think we have a lack of desire for our product, but we do not have a lack of affordability,” Musk said at the recent conference.
Price reductions and competition did not hurt EV shares. Shares of XPeng, NIO and Li Auto – along with Tesla – delivered incredible returns in 2020. NIO shares, for example, rose about 1,110% and Tesla’s huge 743% increase.
Despite competition and the share price performance, the Chinese EV shares are still popular among analysts. More than 60% of the analysts covering all three companies rate the shares as Buy. The average buying rate ratio in the Dow is about 57%.
Barron’s is more cautious and recently wrote that the valuations in Chinese EV producers are too high, suggesting that investors are making a profit. This article appeared in mid-December.
XPeng trades about 15 times for 2021 sales. NIO and Li Auto traded about 15 times and 8 times estimated sales, respectively, in 2021. Tesla, by comparison, traded about 14.5 times 2021 sales.
The three Chinese EV producers are expected to report in the early days of 2021.
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