Nio, Li Auto, XPeng: Chinese EV Stocks Plunge as January Sales Reflect Weak Demand

Hong Kong-listed shares of Chinese electric vehicle (EV) makers fell on Monday, as January sales reflected weakness in demand. As of writing, shares of Nio (HK:9866) (NIO), XPeng (HK:9868) (XPEV), Li Auto (LI:2015) (LI), and BYD (HK:1211) (BYDDF) were down 5.4%, 7.7%, 3.1%, and 4.2%, respectively, in Hong Kong. BYD, Li Auto, and XPeng reported year-over-year and month-over-month declines in January EV deliveries. While Nio reported stellar year-over-year growth in January deliveries, the number reflected a sequential decline.Claim 50% Off TipRanks PremiumUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential Chinese EV companies are under pressure due to intense competition in the domestic market, macro uncertainty, expiration of subsidies in several cities in late December, and the impact of a new 5% purchase tax on mid-range models. Moreover, January sales were impacted by seasonal weakness. Here's How Nio, Li Auto, and XPeng Fared in January XPeng delivered 20,011 vehicles in January 2026, reflecting a 34.1% year-over-year decline and a 46.7% fall compared to the previous month. The decline came despite XPeng's growing international footprint. Likewise, Li Auto's January deliveries declined 7.6% year-over-year and 37.5% month-over-month to 27,668 vehicles. The automaker reported its eighth consecutive monthly decline in deliveries, reflecting competitive pressures for the L-series extended-range electric vehicles (EREVs). Slower-than-anticipated production boost for the Li i6 model is also hurting the company. Interestingly, Nio reported a 96.1% jump in its January 2026 deliveries to 27,182 vehicles. In particular, Nio is gaining from the strong demand for its ES8 model. While the company's January deliveries were strong compared to the prior year, they declined 43.5% compared to December 2025. Coming to BYD, while the company maintained its dominant position in the Chinese NEV (new energy vehicle) market, it reported a 30.1% year-over-year plunge in January NEV sales to 210,051 units. Wall Street's Take on Chinese EV Stocks Amid the ongoing pressures, let's look at Wall Street's rating on the U.S.-listed shares of Chinese EV makers, as reflected by the TipRanks' Stock Comparison Tool. Currently, Wall Street has a Strong Buy consensus rating on BYD and a Moderate Buy rating on Nio and XPeng stocks. Given broader industry challenges and company-specific headwinds, analysts are sidelined on Li Auto stock.