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China’s NIO was able to quadruple the supply of electric vehicles in a year, but it is still far from Tesla
Now half of all electric vehicles in the world drive on the roads of China. Local young players are looking to get ahead of each other and get closer to Tesla, which controls 11% of the Chinese market. Ambitious company NIO quadruples the number of electric vehicles shipped in a year, overtaking rival XPeng.
Image source: CNN
So far, Chinese manufacturers cannot boast of the same sales volumes of electric vehicles in China as Tesla, but the dynamics of indicators is impressive. According to CNBC, in January of this year, NIO shipped 7,225 electric vehicles, which is more than four times more than in the same month of the previous year (1,598 electric vehicles). XPeng shipped 6,015 electric vehicles in January, breaking its own records for the third month in a row. For NIO, records for the number of electric vehicles delivered are updated for the sixth consecutive month. In the entire history of its existence, this brand has shipped 82,866 electric vehicles.
On the New York trading floor, NIO shares have gained 17% since the beginning of the year, just slightly behind Tesla, which gained 19%. Rival XPeng shares are up 15% since the beginning of this year. In the domestic market of China, Li Auto remains the main rival of NIO, controlling an equal share with it – about 2.7%. Outside of the PRC, NIO is somewhat more successful if we rely on statistics from EV Sales – it owns one and a half percent of the world market for passenger electric vehicles versus one from a competitor.
Local IT giants stand behind China’s top three EV makers. Tencent owns sixteen percent of NIO, while Alibaba controls 14 percent of XPeng. Aggregator Meituan-Dianping holds a 16% stake in Li Auto, although it is only the second largest majority shareholder. In Autopilot, NIO Uses NVIDIA Drive Platform. NIO plans to release more affordable electric vehicles under a different brand. While the company relies on the production capabilities of a partner, it does not have its own enterprises for the production of electric vehicles. According to forecasts of experts interviewed by Bloomberg, the NIO brand will be able to break even only next year, and its revenue will grow by 45% annually over the next three years.