NIO will enter into serious competition with Tesla for the first time
Shares of the Chinese company – the developer and manufacturer of electric vehicles NIO Inc. (NYSE: NIO) suffered from local regulators. However, attention remains on the company as it meets Tesla Inc. for the first time. (NASDAQ: TSLA) in a unique market ahead of its time.
NIO is preparing to begin producing the new ET7 sedan in early 2022. This car is in the same niche as the Tesla Model S. Until now, NIO has not entered the intense competition with Tesla in the “spacious” Chinese market. However, next year NIO will enter the German market with ET7 and, most importantly, Norway.
The latter is a particularly tough test for the NIO brand. And it’s not about the cold climate of Norway. Despite severe frosts, which many skeptics considered an insurmountable problem for electric vehicles, Norway became the first country in the world to enter the final phase of the transition to electric transport. Like some other European countries, Norway intends to stop selling new cars with gasoline and diesel engines from 2025, but this may happen as early as April 2022, when all new cars bought in Norway will be electric.
Tesla cars are the undisputed leader in sales in Norway. They already have a solid reputation, and cars of this brand are popular with Norwegians. The high average income in Norway allows people to choose personal transport based on more than just price.
NIO will have to compete with quality, comfort, and reliability in this market, and success or failure in Norway will also become a marker for other needs.
