Tesla is best known as the leading electric vehicle maker worldwide. With it’s headquarter in California, Tesla is reputable for manufacturing electric vehicles, scalable generation of clean energy, and storage products. You can play with assumptions, or try scenarios, as-well-as ask questions to other users and experts. © 2020 Forbes Media LLC. Why Tesla And Elon Musk Face Challenges In China - Duration: 6:55. Why Tesla And Elon Musk Face Challenges In China - Duration: 6:55. 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. 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. 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. More than 4.5 million electric vehicles are expected to be made by 2020, according to … : 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. Registration on or use of this site constitutes acceptance of our Terms of Service and Privacy Policy. The company’s line-up is also more diversified compared to Nio, with its lowest-priced Model 3 starting at $38k. However, in the U.S., its sales have continued to strengthen. However, Tesla — like other U.S. automakers — faces considerable competition in China. Tesla Inc (NASDAQ: TSLA) recently reduced the price of the Model 3 in China. Trefis is currently used by hundreds of thousands of investors, company employees, and business professionals. 2. So does this make Nio the better bet compared to Tesla? Tesla is moving aggressively into China, where the Government is encouraging drivers and manufacturers to go electric. One thing people kept coming back to as a reason to not advertise: their huge lead over the competition. Should You Buy UnitedHealth Group Stock At $340? You may opt-out by. 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. post on the floor of the opening bell at the New York Stock Exchange (NYSE), September 12, 2018 in New York City. 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. 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. Yes - especially if you believe in this one important Tesla metric: Tesla’s time horizon. China is its second largest market based upon revenue. 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 is now producing cars in Fremont, California and in Shanghai, China. 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? All rights reserved. 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 … Tesla’s stock is up over 3x this year. Our analysis How Does Nio Compare With 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. for the last three years. Stock quotes by finanzen.net. This has been a continuing trend after Tesla was able to build a factory in China … Nio, which was founded in 2014, currently offers two premium electric SUVs ES8 and ES6, which are priced starting at about $51k. Premium electric car maker Nio (NYSE: NIO), often touted as the Tesla Tesla is belatedly eyeing China because electric cars are dominating there. 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. There are some other strong competitors, like the Nissan Leaf, the Renault Zoe, the BMW i3 or the Chevrolet Bolt. See all Trefis Price Estimates and Download Trefis Data here, What’s behind Trefis? 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Despite the challenges, NIO's sales improved solidly since September," William Bin Li, Nio's CEO, said in a press release. This includes the VW ID.4, which competes with the Model Y. Tesla’s international footprint is smaller as compared to its nearest competitors. Besides local Chinese EV manufacturers, the Europeans are looking to spoil Tesla’s party. Newmont Stock Rallies 50% But Is Still Attractive, 3M Stock Can Offer Better Gains Compared To Medtronic. Will 2021 Finally Bring Long-Awaited Big Media Mergers? (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. Jon Rettinger Recommended for you. 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