NIO Inc. (NYSE:NIO), Tesla Motors, Inc. (NASDAQ:TSLA) – Nio CEO Says EV Manufacturers Rising Market Share By ‘Always Decreasing Costs’ Solely Hurting Themselves — In Seemingly Dig At Tesla

Chinese language electrical automobile maker Nio Inc.’s (NYSE: NIO) CEO William Li believes EV manufacturers that acquire market share by “always reducing” costs will solely damage their very own model picture, cnEVpost reported Thursday.

What Occurred: Li stated throughout Nio’s first-quarter earnings name {that a} increased gross margin will enable EV makers to do higher service after reaching a sure stage.

“I do not suppose that growing market share by means of value cuts is an effective solution to go, and it could not attain the goal,” the Nio CEO was quoted as saying.

Li stated that getting into the mass market is a strategic concern and his firm will certainly not enter the mass market with the NIO model.

See Additionally: Nio Might Make Cheaper EVs To Seize Mass-Market However Underneath Totally different Model: CEO

On Thursday, Nio reported first-quarter outcomes that exceeded analysts’ expectations.

Why It Issues: Li’s feedback about EV manufacturers gaining market share by means of value cuts appear to be an obvious dig at market chief Tesla Inc. (NASDAQ: TSLA).

In October final yr, Tesla slashed costs of its domestically-made Mannequin 3 automobiles in China for the third time within the yr. The worth reductions got here because the Palo Alto-based firm was in a position to construct a manufacturing facility in China for regionally produced vehicles. Nonetheless, Tesla’s value cuts created difficulties for Chinese language EV makers.

Tesla and Nio are pitched in opposition to one another in China, which is the world’s largest EV market. Earlier this month, Li stated he thinks Tesla is the most important beneficiary of Chinese language laws.

Tesla CEO Elon Musk too has taken digs at Nio prior to now. After Nio’s shares rose previous a psychological resistance level of $40 in November final yr, Musk brushed it off, saying, “420 is ten instances higher than 42,” in a reference to his firm’s shares, which had been buying and selling at a value level about 10 instances greater than Nio’s.

Value Motion: Nio shares closed 5.3% decrease on Thursday at $38.99.

Learn Subsequent: Apple, Tesla Earnings Stories Present An Rising Reliance On China As A Market

Click on right here to take a look at Benzinga’s EV Hub for the newest electrical automobiles information

© 2021 Benzinga.com. Benzinga doesn’t present funding recommendation. All rights reserved.

Source link

Next Post

What is the reason behind the Bank of Japan new approach to QE?

Fri Apr 30 , 2021
Not that long ago the BoJ (Bank of Japan) has officially stated that they decided to abandon their 6 trillion yen target to buy ETFs (the Exchange Traded Funds). And while they are still holding on to their upper limit of 12 trillion yen for the purchases (the limitations were […]