The EV Escapade – Nio Falls Short of Tesla ⚡🚗

Table of Contents

The EV Escapade – Nio Falls Short of Tesla

With a record-rally emerging in the tech industry, several complementary companies in the United States have benefitted from the increased sentiment the market has had to offer. Tesla, for instance, has had a year-to-date return of over 135%, reaching price levels not seen since September of last year. However, this isn’t all to be credited by the resurgence of tech, as the EV titan has held its own throughout an increasingly saturated market. From price cuts to factory expansion, Tesla has remained a leader in the industry with upwards of 60 to 70% market share. This has continued to cripple several other startups that have tried their hardest to get a slice of the pie. Branded the “Tesla Killer” from China, electric-car startup NIO has faced several challenges primarily spurred by the recent EV price war.

Beginning in the summer of 2022, Chevrolet lowered the prices for the popular EV line nicknamed Bolt, slashing their fares by over 15%. With record-high inflation, several markets with higher-priced goods, such as the Automobile industry, may incur large losses to revenues and demand. Other external variables such as increased competition and lowered costs for lithium batteries aided in these price cuts seen across the industry. In the case of NIO, price cuts have chewed into their operating cash flows, requiring more investment to sustain enough capital for scaling. Despite its innovative technology, NIO has had two-quarters of mediocre sales figures that have underdelivered when compared to the likes of Tesla and even other Chinese EV companies. With sinking cash flows and hope for further investment, the clock is ticking for rival brands to copy their tech and capture the market share they hoped to devour.

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.