- Nio share price surges 2538% YoY on China EV push.
- Market cap almost rivals General Motors.
- Chinese regulators target complaints around Tesla.
The race to dominate the global Electric Vehicle (EV) market is heating up as China?s Nio is making its name as one of Tesla?s more prominent rivals in Asia.
Nio?s share price has grown 2538% from a low US$2.38/share last March to a record US$62.8/share last month. The Chinese EV player has a market capitalisation approaching that of US automaking giant General Motors.
Nio?s share price growth has benefited from a Chinese government directive to bolster efforts in the EV sector in a bid to reduce vehicle exhaust pollution in its major cities.
Concurrently, Nio rival Tesla is facing scrutiny from Chinese regulators amid customer complaints about failing auto-brake systems, vehicle explosions and quality issues.
Tesla said in a statement it would ?thoroughly investigate the problems reported by consumers and step up inspections?.
The EV push has, however, faced a setback after EV producers reported issues with limited availability of computer chips.
Nio?s market value dipped to US$61.23 billion this week after almost touching US$100 billion in January, tempering sales growth expectations this year.
Tesla continues to be the dominant player within the EV market, delivering just under 500,000 cars globally last year, while Nio marked 43,728 deliveries.
With the arrival of Ford?s Mustang Mach-E into U.S. dealerships last month, the EV competition is just starting to heat up.