Research Note

Deutsche Bank expects Nio to report soft results for the first quarter, with downside risk to margins, though some relief in on the way.

Strong increases in lithium carbonate prices will not be immediately reflected in lithium battery prices, and prices of other raw materials are still falling, TrendForce said.

With margins and cash burn looking worse following first-quarter earnings, Xpeng management may be making its last stand with the G6, Deutsche Bank said.

"Xpeng delivered even softer 1Q23 results than we previewed, accompanied by a muted 2Q outlook," Edison Yu's team said.

With sales near the low end of guidance, Li Auto's performance in the first quarter is expected to be somewhat mixed, but the outlook for delivery in the second quarter will be robust, according to Edison Yu's team.

Edison Yu's team continues to expect most automakers to be aggressive, as market share is a top priority.

Edison Yu's team shares their key takeaways on new model pricing, design, ADAS, and ultra-fast charging.

While auto shows have generally started to lose some significance as automakers turn to dedicated launch events, this year's Shanghai auto show could be an exception, said Deutsche Bank analyst Edison Yu's team.

Price wars have now become the consensus among investors, setting a relatively low bar for EV makers to beat.

For an EV with a 70-kWh pack, the cost of the battery is now RMB 12,300 - RMB 14,500 lower than when lithium carbonate prices were at their previous high, analysts say.