NEW YORK, January 1, 2026, 1:03 PM ET — Market closed
- China EV leader BYD reported its slowest annual sales growth in five years, as domestic competition intensified.
- U.S.-listed EV shares last closed mixed; Tesla fell about 1% ahead of its quarterly deliveries report due Friday.
- Nio, XPeng and Li Auto published December delivery updates on Thursday, giving investors fresh demand signals into the first session of 2026.
China’s BYD reported its weakest annual sales growth in five years, putting a spotlight on the pressure from an EV price war as U.S. markets stayed shut on Thursday for the New Year’s holiday.
The update matters now because China is the world’s biggest electric-vehicle market, and year-end sales and delivery tallies often reset expectations for demand, pricing and margins. Traders also have Tesla’s fourth-quarter deliveries report on Friday as the next major checkpoint for the sector.
In the last U.S. session on Wednesday, Tesla closed down about 1% at $449.72, while U.S.-listed Chinese EV makers slid more sharply, with Nio down 7.5% to $5.10, XPeng down 4.7% to $20.28 and Li Auto down 2.0% to $16.93.
Tesla is expected to report deliveries of 432,810 vehicles in the December quarter, down about 13% from a year earlier, according to analysts polled by Visible Alpha, Reuters reported. “The fall will be driven largely by sales in North America and Europe,” Deutsche Bank analyst Edison Yu wrote in a note cited by Reuters. Reuters
In China, Nio said it delivered a record 48,135 vehicles in December, up 54.6% year on year, with quarterly deliveries of 124,807 vehicles. The company said cumulative deliveries reached 997,592 vehicles as of Dec. 31.
XPeng said it delivered 37,508 vehicles in December, up 2% from a year earlier, and said 2025 deliveries rose 126% to 429,445. The company also said it expanded its self-operated charging network by more than 1,100 stations in 2025, taking the total to 3,000.
Li Auto said it delivered 44,246 vehicles in December, bringing fourth-quarter deliveries to 109,194, and said cumulative deliveries reached 1,540,215 vehicles. The company said it expanded into Egypt, Kazakhstan and Azerbaijan and launched its “Li AI glasses, Livis,” as it pushed beyond its core China market. GlobeNewswire
BYD said 2025 sales rose 7.73% to 4.6 million units, while December sales fell 18.3% from a year earlier, extending monthly declines to a fourth month, according to Reuters citing a filing. Reuters also reported BYD’s overseas sales rose 150.7% in 2025 to a record 1,046,083 units and that BYD aimed to sell up to 1.6 million cars outside China in 2026.
The cross-current for EV stocks is that weaker demand typically brings heavier incentives, which can squeeze profitability even if unit volumes hold up. Reuters reported Tesla’s fourth-quarter demand was hit by the loss of U.S. tax credits and stiffer competition, including cheaper EVs expected from Chevrolet and Ford over the next two years.
U.S. EV startups were steadier into year-end: Rivian last closed up 0.7% at $19.71, while Lucid fell 2.9% to $10.57. Charging-network names were mixed, with EVgo up 0.2% and ChargePoint down 1.3%.
Before the next session, investors’ focus is likely to narrow to two numbers: Tesla’s delivery figure on Friday and how the market reads China’s December demand signals after BYD’s sales update and peers’ delivery reports. A delivery count is the number of vehicles handed over to customers, a key proxy for demand.
Traders will also watch for any sign that Tesla’s stock can hold the $450 area after its recent pullback, and whether China EV ADRs stabilize after dropping to the low single digits and teens. With the first regular session of 2026 set for Friday, the opening trade may hinge on whether deliveries confirm slowing demand or show resilience despite tighter incentives and aggressive competition.
