The price of Tesla’s shares has roughly quadrupled this year – but the development at the electric car startup Nio from China was even more spectacular. Most recently, according to a critical report by a short seller, it had to put up with losses on the stock market, but since the beginning of 2020 the Nio price has even increased tenfold. The Chinese company, founded in 2014, has so far only sold relatively low numbers and has never made a profit – like Tesla in its early days.
Tesla Model Y could be more in demand
The news agency Bloomberg is currently reporting on this – and points out that the size parallel alone does not make Nio a second Tesla. With the ES6 electric SUV, among other things, Nio has steadily increased its sales in China as its only market to date since March, more than doubling it overall. The growth was recently stronger than the Tesla Model 3 in China. However, its sales are still more than twice as high – and soon the Model Y is coming, which according to Bloomberg analysts could sell better.
China is the only market in which Tesla is not hunted, at least in the electric compact SUV or crossover segment, but hunter. The Model Y is not yet available in Europe either, but the same applies to most of its upcoming competitors. In China, on the other hand, there are already alternative offers not only from Nio. And according to the Bloomberg report, the models of the current stock market star will get additional competition not only with Tesla’s Model Y in 2021. Locally, these included electric cars from BYD, Great Wall Motor, Xpeng and Li Auto, whose shares also rose massively in 2021; and Western car companies also pushed their way into the Chinese electronics market.
Growth in China, Nio to Europe
Unlike other volume competitors, Nio has so far managed to charge higher prices for its electric cars than Tesla. According to Bloomberg, the ES6 SUV starts at $ 54,000, a third more than the Model 3 in China. But Nio is making a name for itself with innovations such as battery changing stations, has just presented a larger battery that can also be retrofitted and is sending service vehicles to be charged. There is a “clear differentiation between the brands” of Nio and Tesla, the CEO is quoted in the report.
That and new models such as an SUV coupe, one per year, should allow Nio to continue growing in the slipstream of Tesla, so to speak. For the coming year, the start is also in Europe, initially only in the electric car country Norway. At home, on the other hand, the startup, whose market value already surpasses General Motors from the USA, benefits from general growth in the auto market, according to Bloomberg. And the Chinese government is systematically ensuring that there are enough incentives for more electric cars.