China Tesla rival Nio is up 240% this year and the company is revamping plans to go global. What's Next: Following the record third-quarter deliveries, Tesla remains on track to hit its 500,000-vehicle delivery goal for 2020, Ives said. On Sep. 8, contributor Christine Idzelis wrote about the Tesla short in mid-August. Thus, NIO has an edge over TSLA here. Everything you need to know about the market - quick & easy. Forget about Nio stock, Volkswagen ought to be Tesla’s much more significant concern. Tesla Vs. Nio: How the Business Models Differ. Of all the legacy companies, Volkswagen has moved the fastest to embrace electric vehicles. The author quoted S3 Partners managing partner Ihor Dusaniwsky, who described the Tesla short as “‘by far the longest unprofitable short I’ve ever seen.’”, As for the losses, Dusaniwsky labeled them “‘just absurd.’”. Nio’s momentum remains intact despite the September swoon. Tesla or Nio: Which of the Two High Flyers Will Win the 2020 Horse Race? The most logical explanation is that Tesla shares were pulling back after that company’s five-for-one stock split,” Moadel wrote on Sep. 10. That conviction’s grown stronger by the year. “As we continue to improve the production capacity for all NIO products, our monthly capacity will reach 5,000 units in September to support our future deliveries.”. Short-sellers made $7.1 billion in profits in the first four days of September trading. So, relative to the index, it’s not doing too bad. Tesla Inc.(Nasdaq:TSLA): Tesla (TSLA) and NIO (NIO) have emerged as key players in the electric vehicle industry. The Next Avenue June 9, 2020 No Comments NIO otr Tesla TNA. Tesla Analyst: China 'Star of the Show,' Automaker Set To Beat Q3 Delivery Forecast, Why Nio Has A Shot At Becoming The 'Tesla Of China'. Copyright © 2020 InvestorPlace Media, LLC. © 2020 Benzinga.com. While Nio is in the earlier phases of growth with revenue expanding 56% last year and growth likely to accelerate in 2020, Tesla sales grew by just 15% last year and could potentially slow in 2020. , perhaps even sooner. Before the pandemic, Tesla expected to sell half a million cars in 2020. A daily collection of all things fintech, interesting developments and market updates. It’s going to be tough for the world’s largest automobile company (by market capitalization) to make up the difference. Li Auto shares were trading 1.01% higher at $16.97. For shareholders of. They're both what we call "story stocks," companies with valuations driven by expectations of futuregrowth and profitability. This story is the second of a two-part look at China’s electric vehicle market. Sequentially, Tesla's growth outdid that of its Chinese rivals. VW’s union head believes that the company can ratchet up its global production capacity for electric vehicles to 1.5 million annually by 2023, perhaps even sooner. “In August, we achieved our best-ever monthly performance on both deliveries and order growth,” said William Bin Li, founder, chairman, and chief executive officer of NIO. The author quoted S3 Partners managing partner Ihor Dusaniwsky, who described the Tesla short as “‘. It’s a long-term buy. Don't have a Benzinga account? “This seems to have precipitated a pullback in other electric vehicle stocks as well. Yet the strong increase should be taken with a pinch of salt. With the EC6 expected later this year (an excellent looking vehicle in my humble opinion), there’s no question it’s going to be an excellent alternative for Chinese buyers. NIO expects the gross margins to rise to double digits by the end of the year. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Tesla investors would much rather be in Nio’s position halfway through the month. 2020 InvestorPlace Media, LLC. Tesla stock has lost 25% of its value in the first half of September. Friday brought delivery numbers from EV pioneer Tesla Inc (NASDAQ: TSLA), and two of China's rising startups, Li Auto Inc. (NASDAQ: LI) and Nio Inc – ADR (NYSE: NIO). Was this Nio’s fault in particular? His hedge fund increased its short bet against the company after its second-quarter earnings call, he says, adding that “‘his conviction is stronger than ever.’”. Year to date, Nio’s delivered 21,667 vehicles, 109.9% higher than in the first eight months of 2019. While having said that, the competition from relative upstarts such as Nio and long-established manufacturers such as, VW’s union head believes that the company can ratchet up its global production capacity for electric vehicles to. . Nio’s … 1125 N. Charles St, Baltimore, MD 21201. All rights reserved. With the EC6 SUV that Nio began shipping last week, Nio's sales trajectory is only improving. Neither company's stock has had a good year, but Tesla's year hasn't been nearly as bad as NIO's: TSLA data by YCharts. The company is going all-out to ride the Model 3 momentum, and it recently cut the price of the standard range and long-range versions of this model. Through Sep. 11, Nio stock is up 369.2% year to date compared to 320.7% for Tesla. With the domestically made Model 3 vehicles coming online only this year, this number is expected to increase substantially in 2020. For most people, the year’s been miserable. If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com. You’ll get the name & ticker of Matt McCall’s top pick when you tune in to his FREE event. https://www.financials.fyi/ - Tesla (TSLA) and NIO stock price, key stats, and financials comparison using charts. Or, if you're worried Tesla can't justify its lofty valuation, you could invest $45 each in NIO and Nikola, while reserving just $10 for Tesla in case it continues to prove the naysayers wrong. Since the beginning of June, except for a couple of pullbacks, Nio’s stock’s done nothing but move higher. While I remain a big fan of Tesla, I don’t see it catching Nio in 2020. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. That conviction’s grown stronger by the year. On Sep. 8, Benzinga reported that Tesla’s short interest was $24.3 billion, more than double Apple’s (NASDAQ:AAPL) short interest of $10.4 billion. As long as it keeps producing substantial delivery numbers each month, I don’t see why it can’t continue moving higher. Nio’s got a 48.5 percentage point lead on Tesla. The price cuts have produced the intended results, as reports suggest Model 3 demand has spiked in response. China was a major source of strength this quarter, Wedbush analyst Daniel Ives said in a note. Read part one here. All rights reserved. Of all the legacy companies, Volkswagen has moved the fastest to embrace electric vehicles. The models between NIO and Tesla were the GAC Aion S, the Buick Velite 6, and the BYD Qin Pro. NIO vs Nikola. Pressured by factory shutdowns and the COVID-19 impact on consumers, Tesla's deliveries declined about 6.5% year-over-year in the second quarter. Tesla investors would much rather be in Nio’s position halfway through the month. ... Tesla remains on track to hit its 500,000-vehicle delivery goal for 2020, Ives said. At the same time, Nio began seeing a turnaround from the COVID-19 impact toward the end of the first quarter, which culminated in the Chinese company reporting record deliveries of 10,331 vehicles in the second quarter. Article printed from InvestorPlace Media, https://investorplace.com/2020/09/tesla-or-nio-stock-which-of-the-two-high-flyers-will-win-the-2020-horse-race/. The top electric vehicle manufacturers reported strong vehicle deliveries in the third quarter. Get pre-market outlook, mid-day update and after-market roundup emails in your inbox. But let’s find out which is the better buy now. Tesla's production stood at 145,036 units in the third quarter. We’ve got approximately three-and-a-half months left in 2020. While having said that, the competition from relative upstarts such as Nio and long-established manufacturers such as Volkswagen (OTCMKTS:VWAGY) is only going to get more intense in 2021 and beyond. And, this could be a perfectly buy-able dip, not unlike the one that occurred in July.”. InvestorPlace’s David Moadel recently suggested that Nio’s September correction provides investors with an opportunity to get onboard its next leg up into the $20s. And if it ever makes its way over to North America, I think it would do well here as well. We’ve got approximately three-and-a-half months left in 2020. Strong Across-The-Board EV Delivery Growth: Reflecting the solid interest in EVs, each of the companies reported strong double-digit quarter-over-quarter growth. NIO’s deliveries for the third quarter ended September 2020 indicates a 154.3% improvement year-over-year to 12,206 vehicles. That has investors climbing into Nikola Stock thinking it’s the next Tesla. Nio Vs. Xpeng: A Look At The Chinese Electric Vehicle Market. Hedge fund manager Mark Spiegel contributed to Institutional Investors’ August article about Tesla. For shareholders of Tesla (NASDAQ:TSLA) and Nio (NYSE:NIO), it’s been anything but terrible. For most people, the year’s been miserable. , 104.1% higher than in the same month a year earlier. The weakness is partly attributable to negative broader market sentiment. You would think given the mark-to-market losses for Tesla bears year to date — estimated at $21 billion in August — a short squeeze would have taken place by now. Read The Full Article On: Benzinga. It appears that the race between the two electric vehicle makers is neck and neck. Unless You Ask The DEA, Privacy Policy / Do Not Sell My Personal Data. The Man Who Recommended 23 1,000% Winners Is Revealing His #1 Stock for 2020. Posted-In: electric vehicles EVsNews Tech Best of Benzinga, Thank you for subscribing! The analyst predicted record deliveries not only for the third quarter but also the fourth. quotes delayed at least 15 minutes, all others at least 20 minutes. Nio, a Chinese automobile company that designs and manufactures premium electric vehicles, has seen its stock almost double year-to-date.