Chinese electric vehicle company Nio Inc - ADR (NYSE: NIO) is ramping up international expansion and has its eyes set on the U.S. market.
Here’s how Nio’s CEO saw the company’s position gaining in the U.S. and what he thought about rival Tesla Inc (NASDAQ: TSLA).
What Happened: Nio began delivering electric vehicles four years ago in China and put a focus on international expansion with a goal of being in 25 countries by 2025.
Nio started delivering EVs in Norway in May 2021, and the company announced on Oct. 7, that its ET7, a high-performance flagship sedan, is available to order in Germany, the Netherlands, Denmark, and Sweden, with deliveries due to start this month.
Nio CEO William Li recently shared his thoughts about the company’s expansion efforts in Europe and the U.S., as well as what set Nio apart in an interview with German media heise Autos, as reported by Electrek.
“It starts with the fact that our product has been developed for the future. With the ET7, sensors such as the LIDAR radar are clearly visible and the interior follows the concept of mobile living space,” Li said. “We are more than a car manufacturer. We already have a community in China and we want to find one in Europe as well.”
Li talked about the U.S. market: “We only become active in a market when we have the right product and the right services for this region, and we planned to also become active in the USA by the end of 2025.”
Instead, the company is now monitoring developments after the passage of the Inflation Reduction Act, which Li said made it harder for foreign automakers to enter the market.
Nio competes with Tesla in China and its expansion into other European countries could put it further in a head-to-head battle with the EV leader.
“Tesla is a respectable car manufacturer and we can learn a lot from them,” Li said.
Li credits Tesla with efficient vehicle production and its direct sales model. The CEO said there are big differences between the two car companies, including Nio's bigger focus on the user over technology.
Li also shared a warning about Tesla.
“Tesla is under pressure. If they don’t improve their products fast enough or don’t provide good services, they will quickly be pushed out of the market.”
Li also took on Tesla CEO Elon Musk in his interview.
“I write my own Facebook posts to communicate directly with our users and not just make a Twitter statement. Besides, I’m the better dancer.”
The comments on Musk’s dance moves referenced the numerous times the Tesla CEO has busted a move for opening new factories or hitting production milestones. Could there be a Nio versus Tesla dance-off in the future?
Related Link: Nio Shares Higher After Q2 Earnings Results
Why It’s Important: Li said the goal of Nio is to be a top-five global automaker by the year 2030. It’s a grand ambition with a rising number of EV upstart companies and traditional automotive companies that are transitioning to EVs.
Tesla has been the leader in EV production for years, a position that put a target on its back from EV companies such as Nio and also traditional automakers like Ford Motor Company (NYSE: F) and General Motors Company (NYSE: GM).
The Nio CEO said the company will become profitable quicker than Tesla: “We have a finely tuned plan to generate profits step by step. It took Tesla 16 years to become profitable. With Nio, this will be the case much faster.”
Nio is focusing on EV in the small car and SUV segments. The company’s strong presence in China could help it become a key player in the EV space. The company will also need to see strong adoption in Europe and eventual launch in the U.S. to hit its goal of being a top-five player worldwide.
Nio delivered 10,878 vehicles in September and hit deliveries of 31,607 for the third quarter. Tesla had deliveries of 343,830 vehicles in the third quarter.
NIO Price Action: Nio shares are down 1% to $12.72 on Thursday.
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Photo: Courtesy Nio and Tesla Inc
