Tesla, Local Rivals Nio, Xpeng, Li Growing Together, Not Cutting Each Other's Market Share, Say Analysts

Benzinga2021-07-20

Tesla Inc(NASDAQ:TSLA) and local electric vehicle rivals such asNio Inc(NYSE:NIO) are growing the electric vehicle segment together in China and not eating into each other's market share, Zhongtai Securities analysts said, asreported by cnEVpost.

What Happened:Chinese electric vehicle makers such as Nio,Xpeng Inc(NYSE:XPEV),Li Auto Inc(NASDAQ:LI) andBYD Co(OTC:BYDDY) along with Teslareported robust delivery numbersin June.

Tesla has stepped up the competition in Chinaafter introducinga lower-priced Model Y variant. The strategy has paid off as the Elon Musk-led company has reportedly secured a flood of orders but raised fears of doom and gloom for China's new carmakers.

Zhongtai Securities analyst sees the move as overblown as China's new carmakers are competing differently both in terms of demand and pricing.

Why It Matters:Tesla has introduced a more affordable variant of electric mid-size SUV Model Y in China, which qualifies for a subsidy as well as it is sold under RMB 300,000 ($46,000), the benchmark. Deliveries are expected to begin in August.

Tesla’s biggest rival Nio at the moment operates a portfolio that is more expensive and not eligible for the subsidies as they are all priced over the RMB 300,000 limit.

Ford Motor Co(NYSE:F) too hasadded another variantof its all-electric sports utility vehicle Mustang Mach-E in China for under RMB 300,000 ($46,000), thus qualifying it for state-led subsidies.

Price Action:Tesla shares closed 0.31% higher at $646.22 on Monday. Nio closed 1.29% higher at $43.35.

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精彩评论

  • 进击的阿甘
    2021-07-21
    进击的阿甘
    蔚来全系车型都是换电车型虽然售价在30万以上但是可以获得政府补贴
  • moneytome
    2021-07-21
    moneytome
    EV becoming more accessible
  • Kevinchai
    2021-07-21
    Kevinchai
    NIO please
  • 2021koon
    2021-07-21
    2021koon
    Confidence in these stocks!!
  • chefbean
    2021-07-21
    chefbean
    Like pls
  • Cocoa88
    2021-07-20
    Cocoa88
    Good
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