Credit Suisse analyst Dan Levy shared vital takeaways from May EV sales. Global EV penetration was 13% in May, up ~150bp M/M, above the YTD '22 pace and well ahead of the 2021 EV penetration rate.
All regions saw M/M EV uptake improvements except for China. However, it remained the global leader, and the M/M decline was likely a function of normalizing production as China lifted COVID restrictions.
Tesla, Inc's (NASDAQ:TSLA) 11% global EV share in May remained near its low point over the last three years due to the Shanghai lockdown. Though battery material costs will remain a focus, recent signs of price normalization will likely provide welcome relief to OEMs.
Material availability concerns reminded him that OEMs might need to revisit long-term penetration targets while focusing on controlling the supply chain, considering LFP, and using hybrids.
China's strong EV uptake was due to several factors, including tech and cost-effectiveness. NIO Inc's (NYSE:NIO) June deliveries climbed by over 60.3% Y/Y, XPeng Inc's (NYSE:XPEV) deliveries for the month jumped by 133% Y/Y, and Li Auto Inc's (NASDAQ:LI) deliveries rose 68.9% Y/Y.
The Q2 deliveries of NIO grew 14.4% Y/Y, XPeng by 98% Y/Y, and Li by 63.2% Y/Y.
Price Action: TSLA shares traded higher by 0.35% at $671.08 on the last check Friday.
