Chinese electric vehicle manufacturer Nio Inc (NASDAQ: NIO) faces increased competition from Tesla Inc (NASDAQ: TSLA), which will only become more intense with the launch of the latter’s China-made Model Y vehicle, according to Bloomberg Intelligence analysts.What Happened: The Elon Musk-led company’s locally-made compact SUV could give the Nio a run for its money, as per the analysts. “Tesla’s brand cachet and wider distribution network could lift its Model Y unit sales above Nio’s,” they said, as reported by Bloomberg on Thursday.Competition is also reportedly intensifying as conventional automakers such as Volkswagen AG (OTC: VWAGY), Toyota Motor Corporation (NYSE: TM), and Daimler AG (OTC: DDAIF) jump on the EV bandwagon.Nio CEO William Li appears to be unfazed by the threat posed by the Elon Musk-led company. “There is a clear differentiation in branding” between Nio and Tesla, Li said this month.Why It Matters: Tesla will start producing the Model Y in Shanghai by December, according to Tesmanian. Tianfeng Securities predicts that Tesla would lower the price of the SUV in China to $41,000 from the current price of $49,990 charged in the United States. The firm predicts that Model Y monthly sales could reach 30,000 units.The starting price of a Nio ES6 SUV is $54,000. Bloomberg analyst Steve Man said, “another wave of price cuts for premium electric vehicles in China may be on the horizon, stirring up what could be an intense rivalry.”Nio is behind Tesla in terms of sales volumes, reporting more than 5,000 monthly sales for the first time in October. Tesla registrations have been in the range of 11,000-12,000 units for the past few months, data from China Automotive Information Net indicates.Other local EV makers are also heating up the competition in the space. Xpeng Inc. (NASDAQ: XPEV) reported 342.5% year-over-year rise in revenue for the third quarter at $293.1 million on Thursday. Other players like Li Auto Inc. (NASDAQ: LI) and Warren Buffett-backed BYD Company Ltd. (OTC: BYDDF) are also reporting strong demand for their electric vehicles.Price Action: Nio shares closed 12.14% higher at $48.30 on Thursday and gained 1.47% to $49.01 in the after-hours session. On the same day, Tesla shares closed 1.29% lower at $411.76 and fell 0.18% in the after-hours session. Latest Ratings for TSLA DateFirmActionFromTo Oct 2020CitigroupMaintainsSell Oct 2020Morgan StanleyMaintainsEqual-Weight Oct 2020Canaccord GenuityMaintainsHold View More Analyst Ratings for TSLA View the Latest Analyst RatingsSee more from Benzinga * Click here for options trades from Benzinga * Rivian Says All Its Electric Vehicles Will Now Come With Driver Assistance System * Rivian Starts Taking Pickup Orders, With Pricing That Tops Tesla Cybertruck(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.,
Chinese electric vehicle manufacturer Nio Inc (NASDAQ: NIO) faces increased competition from Tesla Inc (NASDAQ: TSLA), which will only become more intense with the launch of the latter’s China-made Model Y vehicle, according to Bloomberg Intelligence analysts.What Happened: The Elon Musk-led company’s locally-made compact SUV could give the Nio a run for its money, as per the analysts. “Tesla’s brand cachet and wider distribution network could lift its Model Y unit sales above Nio’s,” they said, as reported by Bloomberg on Thursday.Competition is also reportedly intensifying as conventional automakers such as Volkswagen AG (OTC: VWAGY), Toyota Motor Corporation (NYSE: TM), and Daimler AG (OTC: DDAIF) jump on the EV bandwagon.Nio CEO William Li appears to be unfazed by the threat posed by the Elon Musk-led company. “There is a clear differentiation in branding” between Nio and Tesla, Li said this month.Why It Matters: Tesla will start producing the Model Y in Shanghai by December, according to Tesmanian. Tianfeng Securities predicts that Tesla would lower the price of the SUV in China to $41,000 from the current price of $49,990 charged in the United States. The firm predicts that Model Y monthly sales could reach 30,000 units.The starting price of a Nio ES6 SUV is $54,000. Bloomberg analyst Steve Man said, “another wave of price cuts for premium electric vehicles in China may be on the horizon, stirring up what could be an intense rivalry.”Nio is behind Tesla in terms of sales volumes, reporting more than 5,000 monthly sales for the first time in October. Tesla registrations have been in the range of 11,000-12,000 units for the past few months, data from China Automotive Information Net indicates.Other local EV makers are also heating up the competition in the space. Xpeng Inc. (NASDAQ: XPEV) reported 342.5% year-over-year rise in revenue for the third quarter at $293.1 million on Thursday. Other players like Li Auto Inc. (NASDAQ: LI) and Warren Buffett-backed BYD Company Ltd. (OTC: BYDDF) are also reporting strong demand for their electric vehicles.Price Action: Nio shares closed 12.14% higher at $48.30 on Thursday and gained 1.47% to $49.01 in the after-hours session. On the same day, Tesla shares closed 1.29% lower at $411.76 and fell 0.18% in the after-hours session. Latest Ratings for TSLA DateFirmActionFromTo Oct 2020CitigroupMaintainsSell Oct 2020Morgan StanleyMaintainsEqual-Weight Oct 2020Canaccord GenuityMaintainsHold View More Analyst Ratings for TSLA View the Latest Analyst RatingsSee more from Benzinga * Click here for options trades from Benzinga * Rivian Says All Its Electric Vehicles Will Now Come With Driver Assistance System * Rivian Starts Taking Pickup Orders, With Pricing That Tops Tesla Cybertruck(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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