The “Tesla of China:” Why Chinese Electric Vehicle Manufacturer Nio Is Making Waves

In January, shares of Nio were cheaper than a PSL.

Since then, the Chinese electric vehicle manufacturer has had a major glow-up:

• Stock price up 1,220% since January
• ~$50 billion market value—roughly equal to GM’s
• This week’s Wall Street darling

AKA... the “Tesla of China”

That’s a tough title to live up to, as Nio’s nickname-sake has far less national competition (and a share price of ~$428). But like Tesla, Nio has a headline-hungry founder and a lot of ambition.

Compared to Li Auto and Xpeng—China’s two other publicly traded EV companies—Nio is the main character. It has three electric SUV models, a battery subscription service, and self-driving technology under development.

China’s EV goal: Chances are Nio et al will headline China's aggressive EV push. The country hopes that new energy vehicle sales (think: battery-only EVs and plug-in hybrids) will make up 25% of all car sales by 2025.

Extra-wide lens: Electric vehicle companies, at least, seem to be having a good year. EV stocks that Barron’s tracks are up 360% on average in 2020, though trading in the sector has been “wild” over the past month.