An analyst told CNBC that as Chinese domestic automakers try to match Tesla in the growing field of electric vehicles in China, Neo has a large market share.
The Chinese electric car start-up company released its first sedan et7 on Saturday, which features autonomous driving technology, claiming that it surpasses Tesla. The pre-subsidy price of et7 with a 70-kilowatt-hour battery pack started at 448,000 yuan (US$69,000).
Bill Russo, the founder and CEO of Automobility Limited, said on CNBC’s “Asia Road Sign” on Monday: “This is Nio’s iconic car in the car sector.” He explained that the company has established itself. Its status as a high-end brand in the SUV category, the brand̵
Russo said: “Now they are turning to the car market, or the high-end car market.” He added that et7 will compete with Tesla’s imported Model S.
He said: “Obviously, the price announced at Nio Day is actually quite competitive with Model S. This is a desire that they want to position the brand in China and Chinese companies, and they are determining that they are premium ( Electric vehicle) company.”
Last year, Reuters reported that Tesla had reduced the price of its Model S in China by 3%.
Catch up with Tesla
China is already the world’s largest auto market. In order to become a leader in electric vehicle technology, Beijing has provided support to the auto industry through subsidies, loose restrictions and the construction of charging infrastructure.
Local electric vehicle manufacturers including Nio, Li Auto and Xpeng said that their deliveries surged last year-government data shows that from January to November, sales of pure electric vehicles increased by 4.4% year-on-year, while overall passenger vehicles Sales fell by 7.6%. Despite this, their delivery volume is still insufficient for Tesla.
“It is clear that everyone is trying to compete with Tesla. Tesla is undoubtedly the market leader. Its market value is far ahead of anyone else,” Russo said. As of Monday, Tesla’s market value is about 768.93 billion U.S. dollars, while the market value of NIO is about 98.63 billion U.S. dollars.
On Friday, December 4, 2020, employees conduct inspections at the inspection line during a media visit at the Nio Inc. production facility in Hefei, Anhui Province, China.
Shen Qilai | Bloomberg | Getty Images
Weilai said: “Weilai is working hard to establish its own Chinese Tesla brand, which means you have to compare yourself as China’s premium electric car brand with entering the Chinese market, and the Chinese market will grow significantly in the next five years. .”
He said: “These companies will develop with the market. I think Nio is well positioned and can seize many opportunities.” He added that despite this, the company still cannot control all of its supply chain and relies on third parties to obtain Such as autonomous driving chipsets.
As far as Tesla is concerned, it has increased its efforts in China, including more promotions on New Year’s Day. The company has a factory in China that can produce 250,000 cars and announced a new Chinese-made Model Y with a price of 339,900 yuan.
— CNBC’s Evelyn Cheng contributed to this report.