A tale of two extremes! BMW and General Motors' stocks plummet, while Tesla and
Overnight, the capital market's automotive stocks experienced a "fire and ice" scenario.
On September 10th (Eastern Time), BMW AG (BMWYY.US) saw a gap down and plummeted by 10.44%, continuing its recent downward trend. Similarly, its European shares, BMW Group (BMW.DF), also experienced a significant drop of 11.15% on September 10th with increased trading volume.
Additionally, General Motors (GM.US) fell by 5.44%, while Porsche (ADR), Volkswagen AG (ADR), and Ford Motor Company saw their stock prices drop by nearly 3%. Several other automotive stocks, including Honda Motor, NIO, Toyota Motor, and Nissan Motor (ADR), also faced declines.
However, in contrast to the decline of most traditional automotive stocks, the new energy vehicle sector saw Tesla (TSLA.US) rise by 4.58%, and Li Auto (LI.US) jumped up by 3.87% with a gap and increased volume. XPeng Motors and Zeekr also saw gains of nearly 3%, truly a "fire and ice" situation.
From a news perspective, BMW has recently recalled over 1.5 million vehicles worldwide due to brake system failures caused by Continental AG, affecting certain BMW X series, 5 series, 7 series, and MINI Cooper models. It is reported that the affected vehicles were produced between June 2022 and August 2024, with the issue stemming from problems with the Integrated Brake System (IBS).
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BMW stated that due to this recall, the costs associated with it are expected to reach tens of millions of euros, which will impact the company's profit margins. BMW is currently assessing whether it can claim compensation from the supplier Continental AG to offset some of the losses.
Furthermore, BMW has revised its sales and profit targets for the fiscal year 2024, expecting the operating profit margin to drop to 6% to 7%, lower than the previously anticipated 8% to 10%.
While BMW is dealing with the recall issue, Volkswagen is striving to cut costs to cope with competitive pressures.
On September 2nd, Volkswagen issued a statement saying that, in order to further reduce expenses, the company is considering closing one of its car manufacturing plants and a parts factory in Germany. These potential measures target Volkswagen's main passenger car brand, as well as other group entities.On September 10th, Volkswagen took a substantial step by announcing the cancellation of several employment security agreements related to a 30-year-old deal. This agreement was originally designed to safeguard job positions for employees until 2029, but now the security will expire in the middle of next year.
Additionally, Wells Fargo has recently downgraded its target prices for Ford and General Motors. Wells Fargo anticipates that by the end of 2025, the automobile production of the three major Detroit automakers will decrease by 2% compared to 2024, as they continue to face unfavorable factors in pricing, electric vehicles, and regulations.
In contrast to these automotive giants, new energy electric vehicle companies have recently received some good news, especially in terms of sales.
It is understood that recently, Zeekr Automobile announced that the first week's orders for the Zeekr 7X exceeded 20,000 units. The Zeekr 7X has already started pre-sales, with a price starting at 239,900 yuan, and the new car will officially hit the market on September 20th.
Moreover, Zeekr delivered 18,015 vehicles in August this year, a year-on-year increase of 46%, and a month-on-month increase of 15%; from January to August, a total of 121,540 vehicles were delivered, a year-on-year increase of 81%.
Li Auto released its sales chart for the new week (September 2nd to 8th), with a weekly result of 10,700 units, continuing to firmly hold the first place among domestic new forces, and also surpassing Audi and BMW to become the luxury brand just behind Tesla and Mercedes-Benz.
In August 2024, Li Auto delivered 48,122 new vehicles, a year-on-year increase of 37.8%. From January to August 2024, a total of 288,103 vehicles were delivered, a year-on-year increase of 38.4%.
Tesla also sold 16,200 electric vehicles in the first week of September, once again becoming the sales champion among luxury brands. Data also shows that in August, the Model Y continued to dominate the domestic passenger car market delivery champion with 56,000 units.
At the beginning of September, NIO's announcement also showed that the company's vehicle delivery volume in the second quarter of this year reached 57,373 units, a year-on-year increase of 143.9%, and a quarter-on-quarter increase of 90.9%.
At the same time, NIO's adjusted operating loss in the second quarter of this year also narrowed by 14.0% to 4.699 billion yuan.In comparison, traditional automotive giants have been hit with a series of negative news, while new energy vehicle (NEV) manufacturers have recently achieved commendable sales figures. This, to some extent, reflects the competitive edge of NEV manufacturers, while traditional automotive giants are facing severe pressure.
Against this backdrop, traditional automotive giants in Europe and America have no choice but to reevaluate their strategic direction to cope with the challenges posed by NEV manufacturers. Some established car manufacturers have begun to increase their investment in the electric vehicle sector, launching multiple electric models in an attempt to regain a foothold in the market. At the same time, established automakers such as BMW and Toyota are frequently reported to be collaborating with tech companies and traditional automakers, aiming to make breakthroughs in cutting-edge technologies like autonomous driving, battery technology, and connected car systems.
However, to date, sales and reputation have not fully confirmed that these traditional car manufacturers have established a solid position in the field of new energy vehicles. The challenges from new energy vehicles remain ever-present in the future.