The largest electric car producer in China, Nio, is expecting a global expansion in the next few years, reported CNBC Friday.
However, the historical performance was not notable enough for the company. Due to the financial troubles, Nio share prices dropped almost 80% in the last year. Hence, Nio had to lay off significant numbers of employees whereas some founders left the company at the same time.
“We hope in the second half of next year we can begin making some preliminary attempts in some countries that are more welcome to electric vehicles,” William Li, founder and chairman of Nio.
Electric Car sales Turnaround during the Pandemic
With a recent $1 billion investment from state-backed investors helped Nio to have a major turnaround in the middle of the Coronavirus crisis.
The investment came from a local government-level funding talk in southeastern China. Immediately after the funding, Nio revenue started to increase significantly.
According to the company stats, overall electric car delivery increased to 10,000 units in the second quarter. In June alone, Nio saw 3,470 units delivered to the customers.
According to the news, Nio shares jumped 240% this year despite the global health concerns.
Nio is Planning a Global Ambition
Nio Chairman William Li has a global ambition for his company. He said that he wants to sell his cars in Europe and other countries. Since Europe has a demand for electric cars Li said, “We hope to begin with Europe.”
However, Li avoided mentioning the countries he is targeting for a launch. According to the experts, Nio might join the global electric car markets by 2023 with a 200 employee team currently working in the U.S office.
So it will be difficult for them to catch the achievements of Elon Musk very soon. Comparing to the Nio’s performance, Elon’s Tesla delivered 90,000 units in the second quarter. Moreover, Tesla is also strong in China with 25% revenue registered from the country.
Since Tesla is also planning for a push in Europe we can say that it will be difficult for Nio to set a strong foot in the region.