The company’s line-up is also more diversified compared to Nio, with its lowest-priced Model 3 starting at $38k. Those vehicle sales brought in 1.7 billion yuan ($242.5 million) in the third quarter, a 22.5% increase from the second quarter and a 21.5% increase from the same quarter a year ago. In an interview with Bloomberg News on Sunday, Li said that the company's cost-cutting effort was underway and that it expected a further reduction in the first quarter of fiscal 2020. What's the future of the brand in China's fast-changing electric vehicle market? In the fiscal third quarter, Nio delivered 4,196 of its cheaper model ES6 and 603 of its model ES8, for a total of 4,799 vehicles. So when a Shanghai-based automotive startup comes along amid whispers of being “China’s Tesla”, … For now foreign car companies continue to see gold in China and are boosting local production of their own electric vehicles. This might include you though you may have invested money in these companies, or may have been working with one of them for years as an employee, or have consulted with them as an expert for a long time. Meanwhile, the China-focused company has to compete against Tesla - Get Report and several other smaller electric vehicle competitors who have strong presences in China. Nio was down 62% year-to-date through Friday's close. German auto giant Volkswagen will be producing a wide variety of electric vehicles in China that compete with Tesla’s existing model lineup. Shares of Nio, the electric-car maker that is Tesla's biggest competition in China, rose as much as 45% on Monday after the company reported 2019 fiscal third-quarter earnings that handily beat analyst estimates and showed a smaller loss than expected. Investors are clearly eager to learn more about Li's range-extending generator, a small onboard gasoline generator that recharges the One -- Li's flagship compact SUV -- giving the car a range of 500 miles, an impressive technological feat. Shares of Nio, the electric-car maker that is Tesla's biggest competition in China, rose as much as 45% on Monday after the company reported 2019 … While Tesla stock looks expensive, the company’s well-established and desirable brand, its industry-leading tech and software differentiation, and fast-improving profitability should provide investors better downside protection. Surprisingly, the founders of Trefis discovered that along with most other people they just did not understand even the seemingly familiar companies around them: Apple, Google, Coca Cola, Walmart, GE, Ford, Gap, and others. This includes the VW ID.4, which competes with the Model Y. So does this make Nio the better bet compared to Tesla? Often referred to as the ‘Tesla of China’, NIO (NYSE: NIO) analysts have found that its stock is now priced similarly to that of Tesla’s back in 2013 when it was in a similar phase of growth. © 2020 Insider Inc. and finanzen.net GmbH (Imprint). All rights reserved. (Photo by Drew Angerer/Getty Images). Noting that Tesla can improve its dealer network in China as well as its super-charger network there, it could find a larger customer base in the world’s second largest economy. But China already has its own manufacturers, who will … NIO and Tesla are set to compete in more countries than just China, however. With it’s headquarter in California, Tesla is reputable for manufacturing electric vehicles, scalable generation of clean energy, and storage products. Should You Buy UnitedHealth Group Stock At $340? Tesla Has a New Competitor in the World's Biggest Electric Car Market ... That title is held by China, a country that is home to six of the ten major electric car manufacturers worldwide. However, in the U.S., its sales have continued to strengthen. He adds, "This would definitely have a … Automotive sales account for the lion's share of the revenue. Tesla vs Competitors - 5 Advantages In my previous video on Tesla not needing to do traditional mainstream marketing, I got a lot of comments that were in basic agreement with my thoughts. NDAQ 2. Premium electric car maker Nio (NYSE: NIO), often touted as the Tesla Disclaimer | Newmont Stock Rallies 50% But Is Still Attractive, 3M Stock Can Offer Better Gains Compared To Medtronic. Registrations of locally made Tesla Inc. vehicles in China fell in July from the previous month as competition intensified in the world’s largest electric-car market. Tesla also has a competitive advantage in the self-driving software space, given its large base of vehicles on the road and also has among the lowest battery costs in the industry. According to Michael Dunne, founder of automotive advisory firm ZoZo Go, “China … Trefis is currently used by hundreds of thousands of investors, company employees, and business professionals. But it’s also seen enormous success in China, selling more new energy vehicles than any other company in China … While Nio is in the earlier phases of growth with revenue expanding 56% last year and growth likely to accelerate in 2020, Tesla sales grew by just 15% last year and could potentially slow in 2020. Stock quotes by finanzen.net. Why Tesla And Elon Musk Face Challenges In China - Duration: 6:55. China's market may grow faster than the U.S., especially if a Biden administration does not restore EV credits, but Tesla is poised to succeed in China, where as … Jon Rettinger Recommended for you. In 2020, NIO intends to bring its autonomous EVs to the United States , including its model EP9 . Tesla has seen its stock fare better, rallying by over 130% year-to-date, driven by upbeat sales data in China and likely a belief that the disruption caused by the coronavirus could make the shift to EVs harder for mainstream automakers, widening Tesla’s lead in the space. [Source: Personal graphic, Tesla’s competitors in the Chinese market] Tesla faces steep competition in China from a mix of both foreign and Chinese automakers that are already manufacturing and selling electric cars. One of Tesla's newest competitors is Chinese car company Li Auto, which went public to the tune of $11.50 per share in July Made In NYC | Tesla’s (TSLA) greatest advantage when establishing its brand was its distinct lack of viable competitors. Why Tesla And Elon Musk Face Challenges In China - Duration: 6:55. Here's what the company reported, versus what analysts surveyed by Bloomberg expected: The company reported a 35% increase in vehicle deliveries from the second quarter, showing a higher demand for the electric cars than previously thought. Yet, as competitors have burst onto the EU market in greater numbers since 2018, ... the exact same story has been playing out in China, a market on which Tesla has pinned much of … Total deliveries grew 50% to 368k cars in 2019, although we expect growth to slow in 2020. NOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption, Registration on or use of this site constitutes acceptance of our, Visit Business Insider's homepage for more stories, A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption, Dating app Bumble files confidentially for IPO, could seek up to $8 billion valuation, report says », Former US cybersecurity chief Chris Krebs warned not to 'conflate' voting system security with SolarWinds hack despite Trump's claim », 5 Cheap Stocks With Great-Performing Companies, JPMorgan was losing bidder in $7bn battle for asset manager Eaton Vance, EV startup Lordstown and RV seller Camping World are partnering to create the first fully electric RV in the US, Aptera has taken more than 3,000 orders for a new solar-powered EV arriving in 2021 that it says never needs to be charged, Nio slides 6% on 60 million share offering, joining Tesla to cash in on demand for EV stock, A Lazard fund manager overseeing $2 billion lays out the 6 world-changing trends shaping his latest fund - and explains how he plans to capitalize on each, A stock picker at a $558 billion firm lays out 2 under-the-radar trends disrupting the future of transportation- and explains why Slack and Virgin Galactic are perfect fits for his portfolio, Tesla competitor Lucid Motors just completed its first factory in Arizona where it plans to build 400,000 EVs a year. However, the company’s financials remain tough, with net losses exceeding its revenues ($1.1 billion revenue, $1.6 billion net loss in 2019), and gross margins remaining negative, although it indicated that the metric could turn positive in the coming quarters. Tesla is now producing cars in Fremont, California and in Shanghai, China. Tesla’s business model is also looking increasingly viable, with gross margins standing at over 20% and the company’s risk of failure is now low. Nio has had to periodically raise capital to survive, and its fortunes are also heavily tied to the Chinese government, which could have more say in Nio’s operations after it invested about $1 billion in the company in April. Tesla’s recent price adjustments to the Model 3 in China seem to be putting pressure on the electric car maker’s domestic rivals. Nio said it expected to deliver 8,000 vehicles in the fourth quarter, which would bring total aggregate deliveries in fiscal 2019 to more than 20,300. There are already a slew of homegrown competitors in China, where Tesla has . While Tesla looks like a great bet in the long run, which S&P 500 component stocks have the best chance of outperforming the benchmark index in the near- to medium-term? See all Trefis Price Estimates and Download Trefis Data here, What’s behind Trefis? The newcomer's Chinese-backed competitors include Lucid, which has only produced a few handmade prototypes of … Our analysis How Does Nio Compare With Tesla? It will come with single, or dual motors, just like Tesla cars. Cumulative Model 3 sales in China exceeded 110,000 from January to November, and the vehicle has already secured its title as the leader in sales of new energy vehicles in 2020. has more underlying numbers, parts of which are summarized below. Premium electric car maker Nio (NYSE: NIO), often touted as the Tesla (NASDAQ: TSLA) of China, has seen its stock jump 85% year-to-date, following the company’s Q1 … Tesla Inc (NASDAQ: TSLA) recently reduced the price of the Model 3 in China. NIO . The company is also innovating in the self-driving technology space and offers a battery swap service. post on the floor of the opening bell at the New York Stock Exchange (NYSE), September 12, 2018 in New York City. Opinions expressed by Forbes Contributors are their own. averaged about US$2 billion in revenue per year. (Photo by Drew Angerer/Getty Images), EY & Citi On The Importance Of Resilience And Innovation, How Digital Workflows Helped Save Basketball During The Pandemic, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation With Forbes Insights, Billionaire Ray Dalio’s Son Dies In Connecticut Car Crash, Elon Musk Is Nearly $10 Billion Richer This Week With Tesla On The Verge Of Joining The S&P 500. This guide will evaluate the top 10 Tesla Competitors Tesla is best known as the leading electric vehicle maker worldwide. On the flip side, for a more balanced, risk-adjusted view see our analysis Tesla Valuation: Jump Into Tesla, Wait, Or Get Out? One of Tesla's newest competitors is Chinese car company Li Auto, which went public to the tune of $11.50 per share in July and popped 43% on its opening day. All Rights Reserved, This is a BETA experience. See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams, Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you. Additionally, it also provides components for vehicles with its focus towards attaining sustainability. Tesla delivered the first vehicles from its Shanghai factory this week. CNBC Recommended for you. Registration on or use of this site constitutes acceptance of our Terms of Service and Privacy Policy. The Shanghai-based electric car company opened for trading at $6 per share. One thing people kept coming back to as a reason to not advertise: their huge lead over the competition. : TSLA) of China, has seen its stock jump 85% year-to-date, following the company’s Q1 earnings beat and improving automotive demand in China, following the containment of the Covid-19 pandemic in the country. Tesla’s international footprint is smaller as compared to its nearest competitors. Tesla is moving aggressively into China, where the Government is encouraging drivers and manufacturers to go electric. In United Kingdom, Tesla’s Model 3 has experienced faster growth in popularity in 2019. "The electric vehicle sector experienced substantial softness in the second half of 2019 after the reduction of EV subsidies in China. for the last three years. Electric vehicles (“EVs”) were hardly being pursued by legacy automakers with lackluster offerings from brands like Nissan (OTCPK:NSANY) and Chevy (GM). How Do The Core Businesses For Nio And Tesla Compare? 6:55. Nio, which was founded in 2014, currently offers two premium electric SUVs ES8 and ES6, which are priced starting at about $51k. With the Made-in-China … Tesla’s stock is up over 3x this year. (How Tesla’s Battery Costs Impact Its Gross Margins). Ever-Cheaper Batteries Bring Cost Of Electric Cars Closer To Gas Guzzlers, Rally Pause: Wall Street On Edge As Stimulus Talks Drag On, Nike Earnings Awaited, HBO Max Deal And Two Other Reasons Roku Stock Could Hit $660, A Year-End Message To Intelligent Investors And Conscious Consumers. The Shanghai-based electric car company opened for trading at $6 per share. The company expects total revenue of about 2.8 billion yuan ($393.2 million), which would be a 53% increase from the third quarter. Tesla, on the other hand, is relatively more mature and is expected to turn a profit for 2020. Despite the challenges, NIO's sales improved solidly since September," William Bin Li, Nio's CEO, said in a press release. Commerce Policy | There are some other strong competitors, like the Nissan Leaf, the Renault Zoe, the BMW i3 or the Chevrolet Bolt. Xpeng Motors unveiled an electric car that will compete against Tesla Inc.’s Model 3 in China by offering a longer range and cheaper price. Besides local Chinese EV manufacturers, the Europeans are looking to spoil Tesla’s party. Will 2021 Finally Bring Long-Awaited Big Media Mergers? Tesla’s Competitors 1. Tesla's sales exceeded the combined sales of popular domestic competitors: BYD Han EV (7,482), Leading Ideal One (4,646), Xiaopeng P7 (2,732), and Weilai ES6 (2,386). Nio “Tesla” and “China” have been big buzzwords for years, associated as they both are with potentially world-changing innovation and growth. Is this a good time to jump into Tesla stock? Investors expect that the Covid-19 related disruption of the auto market will help Tesla pull ahead of traditional automakers, besides other long-term factors. So if the base model currently costs upwards of $35,000 in the US, maybe Tesla could get it as low as $20,000 in China in future," says Xinguang. CNBC 1,225,464 views. You may opt-out by. Overall, while Nio’s faster recent growth and slightly lower valuation multiple make a case for its stock, it is still a much riskier investment compared to Tesla, given its high cash burn rate, and competition in its bread-and-butter Chinese market. Tesla is belatedly eyeing China because electric cars are dominating there. Nio delivered 20,565 cars last year, marking an 81% year-over-year increase. However, Nio trades at a lower multiple of about 6x trailing revenues, compared to Tesla which trades at 7x. ... Lucid Air: Tesla’s Luxury Competitor - Duration: 4:21. It will start building a plant in Austin, Texas and is building one in Germany . Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you touch, read, or hear about everyday, impact its stock price. China is its second largest market based upon revenue. More than 4.5 million electric vehicles are expected to be made by 2020, according to … TSLA (NASDAQ The platform uses extensive data to show in a single snapshot what drives the value of a company's business. Despite the rosy results, the company said in its earnings release that it "operates with continuous loss and negative equity" and that it did not have sufficient cash "to provide the required working capital and liquidity for continuous operation in the next 12 months" but was working on "several" financing projects. Worldwide, though, there's another story: in 2017, the leader came from China, as the BAIC EC-Series of small EV hatches sold 78,079 units, significantly more than Tesla's Model S, with 54,715 units. This has been a continuing trend after Tesla was able to build a factory in China … Founded in the year 2003, Tesla is an American multinational company headquartered in California, United States. Asian markets are among the fastest growing in the world and there are more opportunities waiting for Tesla in China including a large market for its other products than automobiles. Yes - especially if you believe in this one important Tesla metric: Tesla’s time horizon. This is a list of top Tesla Competitors across the world - Companies which are competing and which will compete in future with Tesla Competitors. This is what happens when you reply to spam email | James Veitch - Duration: 9:49. © 2020 Forbes Media LLC. You can play with assumptions, or try scenarios, as-well-as ask questions to other users and experts. Our 5 In the S&P 500 That'll Beat The Index: TWTR, ISRG, NFLX, NOW, V looks promising. However, Tesla — like other U.S. automakers — faces considerable competition in China. NEW YORK, NY - SEPTEMBER 12: Logos for Chinese electric car company NIO are displayed at a trading ... 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