Summary
– Nio stock rose initially after reports of launching a new vehicle under the Onvo brand at a discount compared to Tesla
– The L60 SUV will be priced around $4,000 less than Tesla’s Model Y with plans to deliver in September
– Nio’s CEO anticipates that the Onvo brand will eventually sell its cars internationally
– Nio uses more affordable batteries from BYD Co for the L60, amid new tariffs imposed by the Biden administration on Chinese EV imports
– XPeng Inc is also leveraging BYD batteries for its Mona sub-brand, while Nio stock has lost 33% in the last 12 months.
Article
Nio Inc (NIO) stock experienced a temporary increase in trading on Thursday following reports of the company launching its first vehicle under the Onvo brand at a discounted price compared to Tesla Inc (TSLA). The L60 SUV will be priced approximately $4,000 less than Tesla’s Model Y and is set to be delivered in September. Nio’s CEO, William Li, mentioned in an interview that he foresees Onvo expanding internationally in the future. Despite Nio historically targeting the premium car market and recently expanding into Europe, its monthly deliveries in China have been relatively modest in comparison to competitors in the electric vehicle market.
Tesla remains a major player in the China electric vehicle market despite fierce competition. Nio has confirmed that the L60 will use more affordable batteries supplied by BYD Co, a move that comes in response to new tariffs imposed by the Biden administration on Chinese EV imports to the U.S. Nio’s CEO criticized these tariffs as “completely unreasonable.” Meanwhile, XPeng Inc has also been reported to be leveraging BYD batteries for its Mona sub-brand. At the launch event, Nio’s sub-brand president, Alan Ai, stated that Onvo vehicles would have access to Nio’s battery swap and charging stations network.
Nio stock has experienced a 33% decrease in the last 12 months. Investors interested in gaining exposure to Nio stock can consider options such as the KraneShares MSCI China Clean Technology Index ETF or the KraneShares Electric Vehicles And Future Mobility Index ETF. Despite the brief increase in trading on Thursday, Nio shares are currently trading lower by 1.22% at $5.66. As with any investment decision, it’s important for investors to conduct their own research and make informed decisions based on their individual financial goals and level of risk tolerance.
Overall, Nio’s recent announcement of the launch of its first vehicle under the Onvo brand at a discounted price compared to Tesla has generated interest in the market. The company’s plans to expand internationally and use more affordable batteries from BYD Co highlight its efforts to compete in the global electric vehicle market. Nio’s stock performance in the last year has been challenging, but investors have options to gain exposure to the company through various ETFs. The company’s future success in the electric vehicle market will likely depend on its ability to navigate increasing competition and regulatory challenges.
Read the full article here
