Nio and BYD gaining more order backlog than Li, says Citi

Citi says Aito’s new M7 72-hours orders hit over 10,000 units and Nio‘s (NIO) orders from last week increased to 6,000 units, up 43% week-over-year. The firm believes the market may expect Nio, BYD (BYDDF) and XPeng (XPEV) short-term share price movement to outperform Li Auto (LI) as Nio and BYD seem to be gaining order backlog more significantly than Li Auto over the second and third weeks of May. For Xpeng, the market may start to price in the Volkswagen (VWAGY) royalty fee payment from Q2, which may largely lift up Xpeng’s potential future margin trend, says Citi. The firm maintains BYD as its top pick in China auto manufacturers.