TESLA or NIO
The Electric Vehicle (EV) market has been buzzing. Here's what you need to know about these two key EV companies.👇
What's up with Tesla?
Tesla is an American company founded in 2003 and is the top electric vehicle automaker globally, specialising in luxury, self-driving, and alternative energy cars. It also designs and produces solar products and energy storage systems. Last year, Tesla sold 1.3 million vehicles world-wide, representing a 40% increase year-over-year! 🚗
What about Nio?
Nio is a Chinese company founded in 2014 that focuses on premium electric SUVs, autonomous driving, and charging solutions, including Batteries as a Service (BaaS) solutions which allow EV owners to swap depleted batteries for a full charge at swapping stations. In 2022, Nio sold 122,000 vehicles, boasting a 34% growth year-over-year.
What to Look Out For in the Electric Vehicles Market
💵 High Demand: With rising energy costs and growing regulation and fines for traditional vehicles, more and more people are looking to buy electric, including individuals and large organizations.
🗠 Stock Picks: Because of surging demand, EV stocks have been popular among investors. Tesla has consistently been trading at high volumes and is up 85% year-to-date, while Nio is down 8%. Interesting in getting started in investing? Check out our 5 Minute Guide to Investing here!
💡 Innovation: Both of these companies operate on the forefront of innovation in tech and as such, spend billions of dollars on R&D to come up with the next big idea in EV. Nio increased it’s R&D spending by ~130% in 2022.
🌎 Environmental: Electric vehicles don’t run on fossil fuels, making them a greener alternative to traditional gas and diesel vehicles.
🔌 Other EVs: Other large vehicle manufacturers such as Ford and General Motors are creating their own electric vehicles with other companies like Waymo and APTIV specialising in self-driving cars and EV architecture.
Key Takeaways For You
Keep an eye on EV innovation - Technology is always changing and these companies put a lot of resources into coming up with the best new solutions. The future of the electric vehicle market will depend greatly on the advances different companies make in technology and success depends on being ahead of the curve.
Understand why EVs are hot - It is important to remember why EVs are being talked about so much. They feature cutting edge technology and run on rechargeable batteries rather than gas, making them more environmentally friendly, which could be key as governments impose stricter pollution regulation and fines.
Watch established & young companies - With emerging technology, both established and start-up companies will likely compete for the next big idea. While large companies have stronger brand presence and a bigger budget, start-ups can pivot quickly and are often scrappy and resourceful.
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