Nio Could Become Tesla’s Biggest Competitor
Nio, a major producer of electric vehicles, presented its much-awaited sedan over the weekend. The car is equipped with the latest self-driving technology features, according to the company’s CEO and founder William Li.
The electric car maker plans to start delivering first units to its new customers in the first quarter of 2022 at a price starting from ¥448,000 ($69,000). The car comes with a 70 kilowatt-per-hour battery pack, which should be enough to cover a driving range of 1,000 kilometers (621 miles), according to the company.
“This is the icon vehicle for Nio in the sedan category,” Bill Russo, founder and CEO at Automobility Limited, told CNBC.
Analysts are positive that the latest addition to Nio’s portfolio of electric vehicles could help the company directly compete with Tesla’s business in China. The sedan model is considered to be a premium car segment.
“Clearly everybody’s trying to position against Tesla. Tesla is certainly the market leader. It has the market capitalization that’s so far ahead of everyone else.”
“It’s a statement of aspiration, it’s a statement of where they hope to position their brand and among the Chinese companies, they are establishing that they are the premium (electric vehicle) company,” Russo added.
Last week, Startup Savant reported that Nio reported deliveries of 43,728 vehicles, which is more than double compared to a year ago. This compares to Tesla’s deliveries of 499,550 vehicles for the full year of 2020.
The rise in business revenue will help the company to pursue its international expansion plans in the second half of this year, starting with Europe.
“2020 has been a challenging year for the whole world. Against this backdrop, NIO has achieved consecutive record-highs along the way, and closed the year on a high note with a remarkable December deliveries of over 7,000 vehicles,” CEO Li said in an official statement.
Shares of Nio gained 6.42% on Monday to push the total market capitalization to near $100 billion.
The China-based electric car maker Nio presented its first sedan over the weekend. The first units of this car will be delivered in 2022, with pre-orders available at a starting price of ¥448,000 ($69,000)
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Mariliana has an MSC in consumer analytics and business strategy. She has a special interest in fast-moving industries and big data.