Weekly Recap: China EV Delivery Results, GM’s Tax Credits, and Fisker’s Dealership Deal

Summary

The past week in the electric vehicle (EV) sector had some significant news:

  • Chinese brands disclosed 4Q delivery results
  • GM has decided to cover lost tax credits
  • Fisker Inc. makes a deal with dealerships

News of such magnitude is provided immediately and in real-time to members of InvestingPro.

Highlights of 4Q EV Deliveries in China

The week began with Chinese EV manufacturers announcing their 4Q delivery figures. Notably, Xpeng Inc saved a steady pace in December, delivering the same number of vehicles as in November. The annual numbers also indicated a reliable 17% YoY growth, amounting to 141.6k deliveries.

Offering a strong performance, Nio had a 31% YoY rise in deliveries for 2023, with the total reaching 160k vehicles. The company also outperformed its 4Q 2023 volume guidance.

Li Auto Inc exceeded its projected delivery numbers for the 4Q of 2023 while showcasing a remarkable 182% YoY growth for 2023 that equates to a total of 376,030 vehicles.

At the same time, Leapmotor hit a new high last month, delivering 18,600 vehicles. Also, Tesla Inc sold 94,139 China-made electric vehicles in December, representing a notable 68.7% surge from the same period last year.

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GM Steps In

Despite the recent loss of a U.S. government tax credit, General Motors Company (NYSE:) declared that it would offer incentives worth $7,500 on its EVs. This comes in response to the new battery sourcing guidelines released by the Treasury.

GM plans to compensate the equivalent EV tax credit amount to cover vehicles that lost eligibility due to the new guidelines. The company anticipates that some of its vehicles will regain eligibility in early 2024.

Shares of GM ended trading down 1.18% for the week after dropping more than 2.4% on Tuesday.

Fisker’s Business Strategy

Fisker Inc (NYSE:) unveiled this week its plan to design an innovative Dealer Partnership model in North America. With this, Fisker intends to blend direct sales and dealer agreements, marking a distinct shift in its market strategy.

This novel model aims to enable Fisker to offer customers fixed pricing, while also providing dealer partners with broader market territories. Fisker expects this approach to accelerate the growth of its sales, delivery, and test drive network.

The week ended with Fisker shares trading down 25.2%.

The ripple effects of these market events could impact forex or trading, notably assets such as NYSE: Xpeng Inc., NYSE: NIO, NASDAQ: Li Auto Inc., HK: Leapmotor, NASDAQ: Tesla Inc, and NYSE: Fisker Inc. With Chinese brands’ impressive 4Q delivery results, GM’s decision to cover the lost tax credits, and Fisker’s new strategy, the EV sector continues to evolve, potentially affecting trading dynamics in these stocks.

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