Research Note

If sales continue up the S-curves, EVs will make up between 62 percent and 86 percent of global car sales by 2030, with China's EV market share reaching at least 90 percent.

Battery-grade lithium carbonate prices are still sinking, but lithium suppliers have begun to cut production and the market is looking forward to the September-October demand season, TrendForce said.

EV sales generally surprised to the upside in August as new product cycles continue to garner robust demand, according to Edison Yu's team.

Deutsche Bank says Nio's third-quarter delivery guidance is below their expectations, which could mean that new order flow will be hard to sustain after the initial surge.

The key to the deal is that Xpeng can get more sales by tapping into Didi's massive network of 19 million drivers in China, Deutsche Bank said.

Nio's overall order intake peaked in July after a significant price cut in June, according to Morgan Stanley.

Shares of Xpeng have given up the entire rally that followed the Volkswagen announcement, suggesting that the markets are missing the forest for the trees, Deutsche Bank said.

Xpeng reported second-quarter earnings today, and Deutsche Bank analyst Edison Yu's team provided their first impressions.

Nio's vehicle deliveries in August and September are expected to be 20,000-21,000 units per month due to auto parts constraints, but parts supply will improve in the fourth quarter, BofA said.

Nio's effective pricing adjustments and more models offered to the market have driven solid sales, BofA said.