What Is NIO?
NIO is a Chinese-based company that specializes in designing, manufacturing, and selling electric vehicles. The company was founded in November 2014 by William Li Bin, a Chinese entrepreneur. NIO has been hitting headlines recently after the stock price increased 240% over the past year. The question is whether NIO can become the next Tesla. First, we must look back at how NIO started.
In 2016 the company received its autonomous vehicle testing permit, which meant they could begin testing their cars on public roads. Since then, they have been developing and upgrading their autonomous system called NIO Piolet. NIO Piolet includes lane-keeping, adaptive cruise control, lane departure warning, automatic emergency braking, highway pilot, traffic Jam pilot, auto lane change, and more.
In addition to NIO’s technologically advanced electric cars, they also have NIO Life, NIO Service, and NIO Power. These services make NIO unique from all of the other EV companies. NIO Life is the company’s clothing collection which supporters adore. NIO Service is the company’s network of service centers that have outstanding customer service and response time. Furthermore, NIO Power is the company’s network of battery swap stations, power mobile, power home, and superchargers.
How Does NIO Compare to Tesla?
Tesla has been a pioneer in the electric vehicle space, selling roughly 1.43 million vehicles since 2009. Tesla even sold 499,535 electric cars in 2020 alone, while NIO only sold 43,728. However, Tesla was founded in 2003, giving them a significant head start in the EV market. If you compare these numbers, it is obvious that Tesla is the more successful company today, but NIO is in the early expansion stage, and their numbers are climbing fast.
These companies share many similarities. For example, they both started by producing expensive performance electric vehicles, which helped develop their brands. They both also focus on modern, technologically advanced, beautiful, high-performance, autonomous vehicles. For these reasons, they are definitely competitors in the rapidly expanding electric vehicle market.
Other than simply car sale numbers, these two companies do have some district differences. As mentioned before, NIO has some services that Tesla does not, most notably the battery swap stations. NIO cars have the battery accessible from the bottom which allows for easy swapping. There are swapping stations set up across china specifically for this. This feature also allows NIO users to have access to the most up-to-date batteries. Tesla vehicles don’t have the option to upgrade batteries.
However, Tesla offers something that NIO doesn’t, which is a sedan. Tesla offers the Model S and the Model 3, which are both popular selling sedan-style vehicles. This fact is important because the sedan is one of the most popular style cars globally. NIO has developed a sedan but has yet to start delivering it.
What Does NIO’s Future Look Like?
NIO’s future seems to be very bright. China is expected to become the largest consumer of EVs. In addition, they are also expanding into other countries. NIO has already started launching into Norway and plans to expand into other countries such as the USA.
Further, NIOs first sedan the ET7 is expected to start delivering in early 2022. This car will likely become their best seller because of its size, performance, technology, and comfort. Overall, NIO is likely to expand in every aspect from sales, revenue, car selection, and stock price over the upcoming years.