China’s NIO and Xpeng are Tesla’s Best Rivals for Global Marketshare: JPMorgan

One JPMorgan Asset Management Manager said Monday that China-based electric vehicle (EV) companies NIO and Xpeng Motors are best slated to rival EV giant Tesla in terms of global market share, as reported by the South China Morning Post.

While the companies may take years to become profitable, they’re still considered the best bets in the long run to rival U.S.-based EV company Tesla, as the investment firm is bullish on growth of EVs in China.

While it could take years for either of the companies to see initial earnings, Hong Kong-based JPMorgan Asset Management Money Manager Oliver Cox believes the companies have the best combination of technology and strong shareholder support of any startup EV makers, as they’re also backed by Tencent Holdings and Meituan financially.

Cox said, “They have three key competitive advantages, [namely] significant production expertise, strong software integration skills such as Advanced Driver Assistance System, and strong backing.”

In China, which is the world’s largest market and the home market for each Xpeng and NIO, each of the automakers saw record-breaking sales in this year’s first quarter, despite still being dwarfed by Tesla’s sales.

The statement also comes at a time following social media backlash against Tesla, following a woman standing upon a Tesla Model 3 at Auto Shanghai in protest against the U.S. company.

In the past, Tesla has criticized Xpeng for using stolen Autopilot source code, with the company even settling a lawsuit with an ex-employee that currently works at XMotors, the U.S. arm of Xpeng Motors, last month.

Tesla is set to announce its first quarter earnings today, and many predict the company will beat Wall Street expectations.