China’s electric vehicle (EV) makers are gaining momentum as demand for clean energy cars continues to grow. Li Auto (LI), XPeng (XPEV), Nio (NIO), and BYD (BYDDF) all reported strong February deliveries, with each company showing year-over-year growth despite the usual slowdown caused by the Chinese New Year holiday, which fell between January 28 and February 4 this year.
BYD Powers Up with Record Overseas Growth and Challenges Tesla
In February 2025, BYD delivered 322,846 vehicles, marking a 7.4% jump from January and a stunning 164% surge year-over-year. This growth is fueled by rising demand for plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs).
BYD’s global reach is also expanding. Overseas sales hit 67,025 NEVs in February, a 187.77% increase year-over-year and the third straight month of record-high international sales. In the first two months of 2025, BYD sold 614,679 passenger NEVs, up 90.44% from the same period last year.
This rapid expansion is intensifying BYD’s competition with Tesla (TSLA). While Tesla focuses on fully electric vehicles, BYD offers both plug-in hybrid electric vehicles (PHEVs) and BEVs, attracting a broader customer base. With rising exports and strong domestic demand, BYD is closing the gap and strengthening its position as a global EV powerhouse.
Li Auto and XPeng Impress with Robust February Deliveries
Li Auto reported 26,263 vehicle deliveries in February 2025, reflecting a 29.7% year-over-year growth. As of February 28, 2025, the company’s total deliveries reached 1,190,062 units. Its focus on family-friendly models with extended-range tech remains a key driver of growth. Li Auto currently operates 500 retail stores across 150 cities and 488 service centers in 224 cities, boosting its reach.
Meanwhile, XPeng delivered 30,453 units, a massive 570% increase year-over-year and a slight 0.33% rise from January. This growth is largely due to the success of the Mona M03 sedan, which mixes advanced technology with an affordable price point to attract cost-conscious buyers.
NIO Deliveries Up Y/Y amid Tough Competition
Finally, Nio delivered 13,192 vehicles in February 2025, marking a 62.2% year-over-year increase but a 4.8% drop compared to January. The decline is mainly due to weak demand for its mass-market Onvo product line and rising competition from cost-effective models offered by BYD.
In response, Nio is cutting costs and preparing new product launches to strengthen its market position. The company aims to double its sales in 2025 and plans to begin production at its third factory in the second half of the year.
Wall Street’s Ratings on Chinese EV Stocks
Using TipRanks’ Stock Comparison Tool, let us take a look at Wall Street’s ratings for the four EV stocks mentioned above. Analysts are optimistic with a “Strong Buy” consensus rating on Li Auto and BYD stocks. The average price target for these stocks indicates a possible upside of 3.87% and 17.04%, respectively, from current levels. However, the ratings and price targets could be revised based on the favorable February deliveries update.
Shares of LI, XPEV, BYD, and NIO are up about 28%, 81%, 41%, and 6%, respectively, on a year-to-date basis.
