China's electric vehicle market is booming, but not everyone is celebrating. While some EV makers are seeing their shares soar, others are facing unexpected challenges. Here’s the full story.
By Jiahui Huang
The Chinese electric vehicle (EV) sector witnessed a dramatic surge in stock prices on Monday, fueled by impressive sales figures reported over the weekend. But here's where it gets controversial: while some companies are reaping the rewards, others are struggling despite strong sales. Let’s break it down.
XPeng and NIO, two of China’s leading EV manufacturers, saw their shares climb by 3.8% and 2.9%, respectively, by midday. This rally was driven by XPeng’s record-breaking delivery of 42,013 units in October, while NIO also achieved a monthly high with 40,397 units sold—a staggering 93% increase compared to the same period last year. And this is the part most people miss: these numbers aren’t just impressive; they signal a broader recovery in consumer demand as the peak sales season approaches and automakers push to clear inventories before year-end.
Xiaomi’s shares jumped 3.5% after the company announced it had delivered over 40,000 units last month. Meanwhile, Zhejiang Leapmotor’s stock rose by 0.8%, thanks to an 84% year-over-year sales increase, totaling 70,289 units in October. Zeekr Group, which is being taken private by its parent company, Geely Automobile, also reported robust sales of 21,423 units.
However, not all EV giants are sharing in the celebration. BYD, China’s largest EV manufacturer, saw its shares drop by 2.4% in Hong Kong, despite selling a whopping 441,706 units last month. Here’s the twist: the decline was attributed to lower net profit and revenue in the third quarter, raising questions about whether strong sales always translate to financial success. Could this be a warning sign for the industry, or just a temporary setback for BYD?
The Chinese auto sector is undeniably experiencing a rebound in demand, but the mixed financial results highlight the complexities of the market. As automakers race to capitalize on the peak season, investors are left wondering: Is this growth sustainable, or are we headed for a bubble? Share your thoughts in the comments—we’d love to hear your take on this evolving landscape.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
November 02, 2025 23:21 ET (04:21 GMT)
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