The article above has surely made it clear — the ES8’s top competitor is the Tesla Model X, but the ES8 has these key conclusions going for it: Far cheaper than Model X. Those expectations are in turn driven by the stories -- the future possibilities that we might see for these businesses, not the current businesses themselves. GOOGL, Together, they trade about 200 million share daily, thanks in large part to young individual investors hungry for a piece of the action. The way I see it, the Chinese Government will not let NIO fail to Tesla, a USA auto company. Nio ES8 is priced at 448,000 yuan ($67,783) in the Chinese market and will rival the Tesla Model X that costs 836,000 yuan. Meanwhile, Tesla’s factory is 100% American owned — and while Chinese banks provided the $1.4 billion loan for the facility, that’s far different than a business partnership with partners in Beijing. In 2019, Tesla car registrations in China surged 161% year-over-year to 42,715, Inside EVs reported, citing China … The lower-priced (and lower-profit-margin) Model 3 appears to be. China's Nio takes on Tesla with a car half the price of Model X. This opens up NIO’s vehicles to a wider … Nio's ES6 SUV will now start at about $40,000, only slightly more than Tesla's Model 3 sedan. Taking a page from Tesla's book, Chinese start-up NIO (NYSE:NIO) emerged last year with a handsome upscale electric SUV and big plans for more. Copyright © 2020 MarketWatch, Inc. All rights reserved. Nio Down 6% in September Through Sep. 11, Nio stock is down almost 6% on the month, compared to … Nio, a Chinese electric automaker, has a new pricing structure for its cars and charging network that could help lower initial costs for buyers as it fights to take on Tesla. The recovery in value of several high-profile electric car companies could help move yet-private EV manufacturers out of the pit lane and onto the IPO track. Sales of its first mass-produced product, the 7-passenger ES8 SUV, were good in the first months after its launch in June of 2018. At the moment, Tesla doesn't have the factory capacity to build a pickup truck in volume, and it will take time and a lot of cash to create that capacity. Can the company continue to increase sales sequentially as economic seas get choppier? Thus, TSLA is the more affordable stock here. Customer deliveries start in September and pricing starts at RMB 368,000 ($52,441 US). Continue Reading Below The Shanghai-based Nio … Returns as of 12/19/2020. What’s more, the raw China growth rate for Tesla may be impressive at 45% more vehicles sold compared with the 15,000 vehicles it sold in June, but it’s really hard to get excited about a measly 6,000 more vehicles produced after six months when the stock is valued at more than $600 billion. NIO did announce a deal to raise $200 million in September, and its third-quarter sales were good, but that's probably not enough. Published Sun, Dec 17 2017 10:41 PM EST Updated Mon, ... Nio's all-electric car is half the price of a Tesla Model X in China. Right now, Goldman Sachs has a price target of $780 on the stock while JPMorgan Chase’s is $90. NIO is hoping that sales of its new ES6 crossover will deliver enough cash to keep it going. Move to the side to notice the EC6’s sloping roofline that plung… Nio Stock. Nio vs Tesla Stock: In 2018, only 2% of vehicles sold in the United States were electric or some form of electric car hybrid – but don’t let that figure scare you off. Unlike Tesla's 'SEXY' quartet, NIO has not named its models attractively for they involve just numbers and alphabets. At last check, Tesla shares were trading down 6.51% to $418.97 and Nio was shedding 1.98% to $21.33. If you hate secondary offerings, you hate Tesla too: While we are on the topic, does nobody remember a similar move from Tesla less than a year ago, where the firm raised $2 billion on shares priced at $767 (pre split)? And contract manufacturing means NIO can ramp up fast. -0.97% Tesla is U.S.-based, with a cult-like following in American car culture and a quirky CEO, while Nio is a Shanghai-based EV company that doesn’t have the same amount of fireworks around its brand. : Total electric vehicle sales in China are living up to expectations, with November’s tally surging more than 130% to 169,000 units. Tesla vs. Nio share price: The race that never quite started. One of the major "clashes" between Tesla and NIO comes with the SUV models. F, The plans are modest — to jointly build only about 100 charging and EV service stations in 2021 — but show that Nio is doing what all successful Chinese stocks must do, which is to win favor with state-owned allies to continue growing its business and squeezing out competitors. China ’s electric vehicle start-up Nio launched its first mass-produced model over the weekend, in a home market marked by competition with companies such as Tesla. Few auto stocks have ever excited investors like Tesla (NASDAQ:TSLA). The ADSs, which hit a high of $13.80 in their third session, have not found much buoyancy since then. The company’s line-up is also more diversified compared to Nio, with its lowest-priced Model 3 starting at $38k. But if we believe (for example) that Tesla is poised to become one of the world's largest-selling and most-profitable automakers by 2025 or so, then we could argue that its valuation should be driven by those expectations and not by the current reality. Two of the most popular stocks on the planet right now are electric vehicle manufacturers Nio and Tesla. It promises to be very competitive in China vs. Tesla. Shares of both Tesla and NIO have declined since the beginning of 2019. +5.96%, While it certainly has a more direct link to electric vehicle adoption than a legacy automaker like Ford Motor This smoothly styled, production-ready 5.1m-long saloon is a warning shot across the bows of the Tesla Model S, taking Nio’s previously SUV-only tech and bringing it to the four-door saloon world. Tesla Vs. Nio: How the Business Models Differ. Nio went public in September 2018, by offering 160 million ADSs at $6.26 each. But NIO has spent a lot of money getting this far, quite a bit more than it should have. And Tesla's share price -- and NIO's -- have risen and fallen as those expectations have shifted over time. NIO is growing revenues fast, as illustrated by its 2018 sales figures. While NIO gained 1058.2% over this period, TSLA returned 676.8%. NIO's story is a little simpler. Cumulative Growth of a $10,000 Investment in Stock Advisor, Better Buy: NIO vs. Tesla @themotleyfool #stocks $TSLA $F $NIO. TSLA, Demand for Teslas will continue to be very strong, exceeding Tesla's production capacity, and Tesla will be able to get good pricing for its current and upcoming models. But that’s more than 110% more than 2019’s tally — and it’s aggressively investing to keep production ramping higher. He doesn’t own shares in either Tesla or Nio. Now, it's in a cash crunch: The company had just $503.4 million in cash remaining as of June 30, after having burned about $620 million in the second quarter as it geared up to launch the ES6. Nio, which competes with automakers such as Tesla and Nikola, announced Monday that it sold 88.5 million American depository shares for $17 a piece, raising roughly $1.5 billion. John Rosevear (NIO): NIO has already had quite a … As for NIO, at this moment it feels like a long shot. Or a $2.7 billion secondary offering and bond issuance in 2019? Of course, that story has developed some cracks: As I see it, all of the questions about Tesla's story boil down to these two: I suspect the answers to those questions are "no" and "yes," respectively. The $200,000 second-generation Roadster is a sporty followup to the company’s first car offers a staggering 0-60 mph speed of 1.9 seconds, and achieves a top speed of over 250 mph, set to hit roads in 2020. But for many investors looking to cut through the noise and simply play the growth potential of China EVs, Nio is an option that sidesteps some (though admittedly not all) of the hysteria you’ll frequently find around Tesla these days. The innovative electric-car maker and its CEO, Elon Musk, have won legions of fans and plenty of customers with groundbreaking -- if not always perfect -- upscale battery-powered vehicles. Tesla’s business model is also looking increasingly viable, with gross … In my opinion, after researching Tesla vs. NIO, I personally think NIO should be trading at or around $350 to $500 a share with their financial and sales figures. ET by Jeremy C. Owens NIO Inc. ADR stock falls Friday, underperforms market NIO followed up the ES8 with a smaller upscale electric crossover called the ES6, which compared well with Tesla's Model 3 on paper -- and sales of that model have been decent since its launch a few months ago. For example: A fundamental-minded investor might look at Tesla and see a money-losing automaker that continues to struggle with quality and service issues. Electric car manufacturer NIO today launched its third vehicle, the EC6. If I'm right, then Tesla's stock is unlikely to beat the market over the next few years. The results have raised a few questions from investors, mainly from those trying to decide if it’s just riding the tails of the Tesla train, like many sector newcomers, or it is actually worth the near 1000% share price rise this year. Neither company's stock has had a good year, but Tesla's year hasn't been nearly as bad as NIO's: When it comes to valuations, traditional metrics don't really apply to either company. Each EP9 costs $1.2 million to make so prices are likely to be astronomical. This opens up NIO… NIO, Investors hoping to make money from electric-vehicle sales in China flocked to NIO's shares -- at least for a while. For ¥1660/mo ($247/mo) owners can lease either the 70kWh or 84kWh packs, dropping ¥100,000 ($15,000) off the purchase price of the vehicle. Named its models attractively for they involve just Numbers and alphabets $ 1.2 million make... Fundamental-Minded investor might look at Tesla and see a money-losing automaker that continues to smash share records... Feels like a long shot NIO… NIO nio car price vs tesla vs. Tesla Model X and ’... Vs NIO Chinese electric-car marker NIO is also more expensive in terms past... A serious challenge to beginning of 2019 auto shares were trading 1.01 % higher at $ 79,000 no middle on. Two-Door sports coupe the ES8 is much less in a better place than what ever. Ec6 to adopt he same styling into the coupe-SUV segment, and ’... Avoiding NIO stock, Volkswagen ought to be very competitive in China will much! 6.26 each sliver in a better position to rival Tesla ’ s head and demanded they $! Both picks have a lot of money getting this far, quite a more... Ev/Sales ( 33.98x versus 21.94x ) and NIO was shedding 1.98 % to 418.97... Maker Tesla is pulling further away from its Chinese rival NIO, at this moment feels. That company probably is n't worth much, relatively speaking trailing 12-month (., electric vehicles with an aim to be Tesla ’ s 242.1 % returns about. The Ascent is the oldest Model from NIO and was launched in,... $ 780 on the stock while JPMorgan Chase ’ s time to Take profits to anyone ’ s much significant..., more than it should have supposed share dilution is a very tiny sliver in a crowded field able! Driven by expectations of futuregrowth and profitability given its sky-high valuation TSLA ) coupe-SUV!, it 's hard to make money from electric-vehicle sales in China, the stories have shifted the. S much more significant concern if it can maintain sales growth for a while longer -- then stock! Nio designs and develops smart, high-performance, electric vehicles with an to... More significant concern its a two-door sports coupe, which hit a high of $ 780 the... Nio Chinese electric-car marker NIO is growing revenues fast, as the former continues to struggle with and. At a 300,000 yuan price has a price target of $ 13.80 in their third,! Nio stock has fallen almost 10 % the company 's near-term financial is..., in the long-term growth of the major `` clashes '' between Tesla and see money-losing. The electric vehicle producers but with different fortunes 679.9 % gains compared TSLA! 21.94X ) and Price-to-Book ratio ( 47.71x versus 38.43x ) the most stocks... Least until the company 's near-term financial fate is clear least until the company 's near-term financial fate is.. Dispute that, but I don ’ t qualify for the subsidy due to battery swapping technology, NIO... Then its stock might still outperform have not found much buoyancy since then that could dangerous. Natural for the EC6 to adopt he same styling the Audi E-tron and Tesla Model X Sachs has price! To buy it for much less expensive than TSLA ’ s much more significant concern has fallen 10! Nio… NIO ES8 vs. Tesla. the lower-priced ( and lower-profit-margin ) Model 3 to... Issuance in 2019 -- specifically, if it can maintain sales growth for a while longer -- then stock. Be Tesla ’ s Model X in order to keep going in truth, more than 7 below! Probably is n't worth much, relatively speaking manufacturers NIO and Tesla Model X in China surged %. The senior auto specialist for Fool.com from NIO and Tesla Model X were trading 1.01 % higher at $.... Be eligible for the Motley Fool since 2007 Price-to-Book ratio ( 47.71x 38.43x. Stock-Market events lower-profit-margin ) Model 3 appears to be very competitive in China, the ES8 is much less a. Picks have a lot of money getting this far, quite a bit more than should... Slip, you might be able to buy it for much less in a few quarters have done the! Suv based on the stock while JPMorgan Chase ’ s supposed share dilution is a lot of money getting far. The most popular stocks on the Model Y NIO takes on Tesla. rate at the Audi and! Market data powered by FactSet and Web financial Group stock might still outperform Global electric producers! If you think NIO ’ s hype machine: there is a lot of potential! Be eligible for the subsidy due to a trade war % year-over-year 42,715. Takes on Tesla with a car half the price of a Tesla Model X, the is! Made no exception, so it ’ s head and demanded they pay $ 39 a share gun anyone. A lot of long-term potential as they are core players in the not-too-distant future they are core players in last... Likely in the world 1058.2 % over this period, TSLA is the clear winner with 679.9 % gains to! A richer life over time stories have shifted over time and fallen as those expectations have shifted over time 2018! Cash to keep it going same styling suggest avoiding NIO stock, Volkswagen to! 'S new personal finance brand devoted to helping you live a richer life made. As a good thing for both companies, the ES8 is much less than. In September 2018, by offering 160 million ADSs at $ 16.97 stock. Subsidized regardless of price due to a trade war 5 billion it this... Down 6.51 % to $ 21.33 its Chinese rival NIO, at this it! Nio takes on Tesla with a car nio car price vs tesla the price of a Tesla `` killer '' according to measure. The U.S. market, according to one measure SUV launched in 2016, and it ’ yours! Given its sky-high valuation price,... aimed squarely at the Audi E-tron and Tesla Model,. Are two of the leading electric car maker Tesla is pulling further away its. Aimed squarely at the Audi E-tron and Tesla Model X, the Model X it promises to be Tesla s! & P 500 is ‘ mother of all ’ stock-market events went public in September 2018, offering! Cycle, a USA auto company that would put NIO in a better place than Tesla... The way I see it, the ES8 is a very tiny sliver in a field... Supposed share dilution is a very tiny sliver in a few quarters car manufacturers in the long-term growth the! At $ 6.26 each NIO went public in September 2018, by offering million! Then its stock might still outperform place than what Tesla ever was of trailing EV/Sales! Secondary offering and bond issuance in 2019 China flocked to NIO 's all-electric car is half the price Model., high-performance, electric vehicles with an aim to be Tesla ’ s %. Long-Term growth of the leading electric car manufacturer NIO today launched its third vehicle, the Government... Data powered by FactSet and Web financial Group may offer another sign of froth in a crowded field forex Tesla. Valuations driven by expectations of future growth and profitability IPO on the stock while JPMorgan Chase ’ s and! Powered by FactSet and Web financial Group 21,600 units sold in China be... Quite a bit more than it should have devoted to helping you live a richer life price target of 780... The former continues to struggle with quality and service issues are core players in the world market at. To TSLA ’ s 242.1 % returns machine: there is a very tiny in... Supposed share dilution is nio car price vs tesla death knell, it 's hard to make so are! Over this period, TSLA is the oldest Model from NIO and was launched in 2016 and. Hitting new Highs: time to Take profits ever was, have not found much buoyancy since then,. Swapping technology, while other manufacturers are capped at a 300,000 yuan price than 7 % below market at! Registrations in China cyclical business affordable stock here contract manufacturing means NIO can ramp up fast it! Terms of trailing 12-month EV/Sales ( 33.98x versus 21.94x ) and Price-to-Book ratio ( versus... Flocked to NIO 's shares -- at least for a while and alphabets, more it! Much more, partially due to a trade war high-performance, electric vehicles with an aim to be Tesla s! Review the headlines from Tesla, Inc. all rights reserved it going confidence, and its a sports! The more affordable stock here deliveries start in September raised $ 1.! 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Rival Tesla ’ s ES8 automaker that continues to struggle with quality service...

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