China’s New EV Champion

The stock of the Chinese EV company Nio has been up seven days in a row. It may not be justified because the EV industry is so crowded. However, it is the largest in the world. 

Nio already has two successful models. The Onvo is aimed at economy buyers, and Firefly, which is for city use. It has debuted the ES8 SUV, which has a sticker price of $40,000, which puts it at the low end of SUV prices. 

Over time, Nio will not be successful if it cannot break out of China the way industry leader BYD has. Even though China’s overall EV sales are well into the millions each year, there are half a dozen viable EV makers.

Overseas Markets

BYD has moved into Asia and has begun an aggressive plan to take a large market share in Brazil, which is the fifth or sixth largest car market in the world. It is in the early stages of moving into Europe, although it faces tariff barriers; Japan has blocked China’s EVs almost entirely to protect its local companies, led by Toyota, Honda, and Nissan.

The prize for each of the Chinese EV companies is an opening n the US. Today, tariffs are 100%, and the Trump administration is likely to keep them. The administration is fickle, so that could change.i