NIO Will Replace Tesla as China’s Top EV Automaker: Money Manager
Louis Navellier, Chief Investment Officer at asset management firm Navellier, believes homegrown electric vehicle (EV) maker NIO is poised to replace Tesla as the market leader in the Chinese region — reports The Street.
“Another electric vehicle company will eventually displace Tesla as the biggest manufacturer of EVs in China,” Navellier wrote in his bold commentary. “I’m talking about NIO. The reality is that this company is on the verge of dominating the EV market in China and Hong Kong,” he added.
At the same time, Tesla’s sales seem to be capping out at around 35,000 units per month, consumers aren’t entirely satisfied with product quality, the automaker had to ‘remote recall’ over 285,000 cars this week, and analysts expect even more competition from domestic contenders like NIO in the coming months.
NIO recently announced a new high-end EV line, code-named “Gemini”, that’s slated to launch next year. According to an invitation for bids from NIO supplier JAC Group, the automaker is also looking to build a new production line capable of producing 60,000 vehicles a year.
Earlier this month, NIO reported a year-over-year increase of over 95% in deliveries for the month of May.
At the time of this writing, NIO American Depositary Receipts (ADRs) are trading at around $49 USD, up 9%. On the other hand, Tesla shares are trading at around $680 USD, so NIO still has a long way to go before it unseats Tesla as top-dog — in any market.