Cars and Drivers

This Is the World's Hottest Car Company

Douglas A. McIntyre

Published: May 8, 2024 6:35 am

Very few Americans have heard of Nio Inc. (NYSE: NIO), which can count itself as one of the world’s most successful car companies. Its stock has been up 26% in the past month, while the S&P 500 has been flat.

Nio is one of China’s dozen up-and-coming car companies. Smaller than rival BYD, it still has the advantage of operating in the world’s largest electric vehicle (EV) market.

In April, Nio delivered 15,650 vehicles, which was 137% higher than the previous year. For the first four months, deliveries totaled 45,623, up 21% year over year. To increase sales in the future, the company has entered the luxury market with its E7. Management said it is “tailored to cater to the demands of premium executive users.”

In an unusual move, Nio also set up a deal to access more EV batteries. Its supplier is BYD, the largest EV company in China.

Furthermore, rumors suggest that it would introduce an inexpensive brand called Onvo. The Onvo L60 will likely compete with the Tesla Model Y. That means Nio will have a suite of vehicles that run from premium to inexpensive. (Check out the five best EVs to drive forever.)

A primary reason Chinese car stocks appear attractive is that, as Western nations reduce incredibly high tariffs on the vehicles, which could take years, they will be the low-cost EV competitors worldwide at a time when EVs are likely to recover after recent slowing sales.

Nio is doing well in China and poised to do well elsewhere.

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