According to the data from the China Passenger Car Association, Tesla Inc (NASDAQ: TSLA) has another rival besides BYD Company Limited (OTC: BYDDY) to worry about, and it is an EV startup, Li Auto (NASDAQ: LI). The October data showed that Li Auto sold more cars than Tesla and Li Auto guided it expects to keep delivering cars at a similar pace in the undergoing quarter.
Li Auto Made A Record In October
In October, Li Auto sold a record 40,422 cars in October, leaving Tesla far behind with 28,626 EVs. This is quite a turnaround from September when Tesla led with 43,507 EVs while Li Auto was behind with 36,060 units.
Moreover, Li Auto expects to deliver 41,700 to 42,600 a month in the fourth quarter. Unlike Tesla-made EVs, all Li Auto vehicles are SUVs with a fuel tank for charging the battery with which this EV startup did a good job in easing range anxiety. Li Auto plans to begin deliveries of its first battery-only model, MEGA multi-purpose vehicle, in February next year. Li Auto announced it is planning to launch three more battery-only vehicles for the second half of 2024.
Li Auto Deliveres Strong Third Quarter Results That Exceeded Estimates.
With its third quarter results, Li Auto swung to a profit of about $386 million on revenue that more than tripled to about $4.75 billion. Unlike many of its local peers, Li Auto does not have immediate plans for overseas growth. But, it is increasing its efforts in autonomous driving as it will be more than doubling the number of its research and development team members by the end of 2025.
For The First Time In Its History, Tesla Could Soon Be Threatened
On the basis of monetary value, China makes only about a fifth of Tesla sales but the EV king recently reported its first revenue and earnings miss since 2019 and its CEO, Elon Musk, openly expressed his concern about the damaging impact of high interest rates on the purchasing ability of potential buyers.In October, its rival BYD reported sales that were more than double compared to Tesla whose sales slipped on a month-over-month basis. BYD fortified its dominant position in China, with both Li Auto and XPeng posting record October numbers. Moreover, October was the sixth consecutive record month for BYD in which it also passed the 300,000 units milestone. Moreover, Reuters reported that BYD plans to build its first European facility in Hungary.
With its domestic rivals in China picking up speed and expanding their footprint while its margins significantly contracted this year due to price cuts, Tesla cannot afford to ignore its weaknesses and growing threats as BYD, XPeng and Li Auto are showing no signs of slowing down.
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This article Besides BYD, Even Startup Li Auto Is A Growing Threat To Tesla originally appeared on Benzinga.com
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