 |
| Chinese companies want to enter the European electric car market |
The influence of Chinese electric car makers is growing worldwide, hoping to enter new industries and impose major new challenges on Tesla and other carmakers.
The excitement of Tesla has taken the electric vehicle manufacturers ’assessment of the market to impressive heights.
Tesla's market cap in January surpassed $ 830 billion and is now down to around $ 700 billion, but it is still three times its closest competitor, Japanese automaker Toyota.
The market value of Chinese competitors Nio, Xpeng and Li Auto has grown rapidly to compete with the large manufacturers entrenched in the United States' general list. Although they do not make a profit annually, they continue to attract retail investors.
Chinese electric vehicle manufacturers are interested in the largest European electric vehicle market in the world.
This is putting pressure on well-known car manufacturers (such as Volkswagen) who are trying to rapidly expand electric vehicle production.
If Chinese brands win wealthy customers, luxury carmakers such as Jaguar Land Rover or BMW will lose as well.
Jaguar has pledged to switch to fully electric cars by 2025. BMW announced last month that half of its European sales will be in electric cars by 2030.
The Chinese government provided major subsidies to the electric vehicle industry to enable it to dominate the new sector.
Li Auto, Nio and Xpeng could become Tesla's biggest competitors, and some Tesla competitors have similar technologies and ambitious brands.
The executive vice president of NIO Europe said the luxury carmaker plans to merge elements from Tesla and Apple, the world's most successful consumer technology companies.
NIO's goal is to start selling cars in Europe later this year. The plant currently produces around 120,000 cars annually, which is significantly less than the 500,000 Tesla cars produced in 2020.
Weilai avoided bankruptcy in early 2020 when it was rescued from the capital of Anhui Province. Due to increased investor demand, it has raised more than $ 4.5 billion in the past few months.
Tesla was enjoying an edge in Europe when it opened a plant in Berlin earlier this summer. Chinese automakers also have the capital to start manufacturing in Europe.
With European giants adopting fuel-powered and hybrid models, Chinese auto makers may have opportunities.
Chinese companies are also actively participating in the electric vehicle boom by manufacturing lithium-ion batteries.
Chinese company CATL is a supplier to Tesla, which has a factory in Germany, and last year it developed a battery that can handle millions of kilometers of driving and charging.
The battery company BYD (BYD) also produces electric cars and has been backed by US investment billionaire Warren Buffett since 2008.
Wealthy competitors could invest a lot of money in technology, adding to the pressure on Tesla.
Nio's main selling point is that the robot can replace a battery in minutes, eliminating the risk of distance anxiety for electric vehicle drivers.
Xpeng has invested a lot of money in self-driving software, which can make a profit by selling subscription-based self-driving features to compete with Tesla.
The Xpeng P7 could target potential Tesla Model 3 and Model S buyers in Europe instead of targeting Nio's richer customers.
Xpeng launched the G3 in Norway, which last year became the first country to bypass sales of internal combustion vehicles thanks to government subsidies.