Often regarded as one of Tesla’s main rivals, NIO has a market value of $ 73.1 billion after its share price soared, far surpassing that of Daimler, the parent company of Mercedes-Benz with a value market of approximately $ 57.3 billion.
Other Chinese electric vehicle newcomers like XPeng, which has only been public for a few months, had a market value of $ 23.6 billion, while Li Auto’s market value reached $ 17 billion.
Strong financial results were the driving force behind the rise in US listed electric vehicle stocks. NIO’s third-quarter sales were up 146 percent year-over-year, according to its latest earnings report, while XPeng and Li Auto gave optimistic expectations for the future.
The plan of major automakers is to devote a total of $ 300 billion to the development and production of electric vehicles over the next five to ten years, nearly half of which will be invested in the Chinese market, according to Securing America’s Future. Energy (SAFE).
Of the 142 super lithium-ion battery factories, which are under construction worldwide, 107 are under construction for the Chinese market, compared to only nine for the US market, SAFE added.
“Over the next few years, the supply chain will become more and more important for the development of the electric vehicle market,” said Huang Jian, Asian Equity Portfolio Specialist at Eastspring Investments. “Because we know that many countries are now promoting clean energy and pushing electric vehicles on the road. ”
Tesla expects China to account for 40% of its global sales by 2022, while traditional auto giants, including GM, increase their investments in electric vehicles in an attempt to catch up.
The local Chinese electric vehicle makers represented by NIO will face a daunting challenge to compete with the two forces.