The electric vehicle (EV) sector is changing very quickly. Chinese EV producers now reign supreme, with the vast majority of EVs currently produced coming out of China. While BYD (BYDDF) and other top Chinese names continue to dominate most of the discussion when it comes to overall deliveries, there happen to be a number of other smaller EV automakers that are worth paying attention to. One of the other top names in this sector? Nio (NIO), a company that just reported a new monthly deliveries record in ...

Core Insights - Ford Motor Co. and General Motors Co. have reportedly wasted significant investments in electric vehicles, with rumors suggesting Ford may discontinue its F-150 Lightning EV [1] - Despite their struggles in the EV market, both companies are trading near historical highs, with GM at an all-time high and Ford close to its 52-week high [2][6] - The stock market currently favors traditional gasoline-powered vehicle manufacturers, particularly in regions outside of China, where the EV market is highly competitive [1][3] Market Position - Ford and GM are not competitive players in the Chinese EV market, which has over 100 companies vying for market share, leading to intense competition that has affected even established leaders like BYD [3] - In the European Union, both companies lag behind competitors such as Volkswagen, Renault, and Stellantis, having not performed well in that market for years [3] - In the United States, GM leads with a 17% market share, followed by Toyota at 16% and Ford at 13%, benefiting from established factory networks and a large number of dealerships [4] Leadership and Financial Performance - Executives Mary Barra of GM and Bill Ford have not received much recognition for their successes, as both companies have struggled to capture a significant share of the EV market, resulting in substantial annual losses for Ford [5] - The potential for a successful EV future could elevate their stock prices to levels comparable to newer entrants like Rivian Automotive Inc. and Lucid Group Inc. [5]

Core Insights - Tesla's third-quarter earnings report showed a delivery of 497,099 EVs, surpassing the previous year's 462,890 and exceeding analyst expectations of under 440,000 [1] - The company reported non-GAAP earnings of 50 cents per share on revenue of $28.1 billion, falling short of analyst expectations of 55 cents per share on revenue of $26.5 billion [2] - The expiration of the $7,500 government tax credit at the end of September led to a surge in EV sales, benefiting the entire U.S. EV market [2][3] Market Share Dynamics - Tesla's U.S. market share is projected to decline to between 41% and 43% by 2025, down from 55% in 2023 and 62% in 2022 [4][6] - General Motors has gained significant market share, achieving 16.5% in the third quarter, while Toyota and Honda are preferred by high-income consumers [5][7] Consumer Sentiment - High-income consumers show a preference for Toyota and Honda, with Tesla ranking lowest in positivity and trust among this demographic [7] - Parents with children under 18 rate Tesla poorly, considering it the least family-friendly brand in terms of positivity, trust, and safety [8]

Investment Rating - Industry View: In-Line [5] Core Insights - Li Auto's May market share increased by 0.6 percentage points month-over-month (MoM) to 4.6%, but year-to-date (YTD) share decreased by 0.4 percentage points year-over-year (YoY) to 4.1% [5][8] - XPeng's market share fell by 0.7 percentage points MoM to 2.8%, while YTD share rose by 2.3 percentage points YoY to 3.5% [8] - NIO's market share decreased by 0.2 percentage points MoM to 2.6%, with a YTD increase of 0.2 percentage points YoY to 2.3% [8] - ZEEKR's market share rose by 0.3 percentage points MoM to 1.7%, but YTD share fell by 0.4 percentage points YoY to 1.6% [8] - BYD's market share dropped by 0.6 percentage points MoM to 26.5%, with a significant YTD decline of 5.0 percentage points YoY to 26.9% [8] Summary by Company Li Auto - May market share: up 0.6 percentage points MoM to 4.6%; YTD share down 0.4 percentage points YoY to 4.1% [5][8] XPeng - May market share: down 0.7 percentage points MoM to 2.8%; YTD share up 2.3 percentage points YoY to 3.5% [8] NIO - May market share: down 0.2 percentage points MoM to 2.6%; YTD share up 0.2 percentage points YoY to 2.3% [8] ZEEKR - May market share: up 0.3 percentage points MoM to 1.7%; YTD share down 0.4 percentage points YoY to 1.6% [8] BYD - May market share: down 0.6 percentage points MoM to 26.5%; YTD share down 5.0 percentage points YoY to 26.9% [8] Tesla - EV market share rose by 0.7 percentage points MoM in May to 4.0%; YTD share down 2.0 percentage points YoY to 4.9% [3]