Nio Inc (NIO stock) is ready to make its formal debut in Europe. After enjoying tremendous success at home, it will join a slew of other Chinese automakers flooding the world’s second-largest EV market. On Thursday, both Nio (NYSE:NIO) and its upstart competitor Li Auto (NYSE:LI), saw their stock prices drop.
On Friday, Nio (NYSE:NIO) is planning to unveil its most recent and cutting-edge ET7, ES7, and ET5 models in Berlin. At noon Eastern Time, the event will be broadcast live on both Nio.com and YouTube. Investors will closely monitor the price structure and the schedule of deliveries.
A little over a week ago, the Chinese electric vehicle (EV) manufacturer BYD (BYDDF) introduced three new battery electric cars, sometimes known as BEVs, for the European market. BYD has introduced the inexpensive Atto 3 small SUV, which may be viewed as a more cost-effective competitor to the Volkswagen (VWAGY) ID.4 and the Tesla (TSLA) Model Y. On Tuesday, BYD announced that it had reached a major agreement with the German auto rental company SIXT. Under the terms of the arrangement, SIXT would purchase more than 100,000 BYD electric vehicles, with some Atto 3 deliveries beginning in the fourth quarter.
Nio Inc (NIO stock) Electric Vehicle
Nio’s ET5, which is its most cheap electric vehicle to date, is considered a competitor to Tesla’s Model 3. It is believed that the ES7 will compete with the Model Y.
Electric vehicle manufacturers in China envision a significant market in Europe. As relatively unknown brands competing against well-known and well-liked Western automobile manufacturers, they also confront significant obstacles.
Thursday was a loss of 2.6% for BYD. The price of Tesla shares remained relatively unchanged. Volkswagen rallied 1.1%. The value of the Nio startup competitor Xpeng (XPEV) dropped by 4% to a new all-time low. The price of LI stock fell by 12%, taking it to its lowest point in over half a year.
The startups revealed last week that China’s electric vehicle (EV) sales increased in the third quarter. According to experts at Deutsche Bank, however, product transitions and supply challenges hurt delivery numbers.
The presence of Chinese electric vehicle manufacturers is growing throughout Europe.
Nio’s co-founders just returned from a 10-day road trip throughout Europe in preparation for the company’s formal debut in that region. Nio launched its first battery swap facility in Germany on September 28. Germany is the home country of Volkswagen, BMW (BMWYY), and Mercedes-Benz (DDAIF).
The premiere ceremony that will take place on Friday is the product of months of meticulous planning. Nio made the announcement of its entrance into Europe the year before.
Norway has served as a test market for both BYD and Nio so far in their respective businesses. They are already beginning their rollout in the countries of Germany, Denmark, Sweden, and the Netherlands. The United Kingdom, along with other nations, is going to follow suit.
Nio has set a goal to be present in 25 countries by the year 2025.
Already present in Europe is Xpeng. Additionally, Li Auto might compete.
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