In October of 2020, 1.4 million electric vehicles were driving American roads. There was an additional 5.4 million hybrid vehicles, which consume both electricity and petrol fuels. Experts project the number of electric cars driven in America to reach more than 18 million by 2030.
The market for EVs continues to grow, with several companies trying to race to the finish and dominate the sector. Although many small players exist in the game, two notable names are competing for the top spot - Nio and Tesla.
But will the newer, smaller company manage to beat the more established, larger one? Continue reading to learn more about current predictions on whether Tesla or Nio will win the electric car race.
Who Is Nio?
Nio is China's leading electric vehicle manufacturer. In China, their company is called Weilai, which means 'Blue Sky Coming.' This name is intended to reference the company's vision for the future, where blue skies and better energy options are the norms.
Nio was founded in November of 2014. Their headquarters are located in Shanghai, China, but they have major offices throughout the world.
The company entered 2020 on the brink of failure. This near-end for Nio was the result of significant growth in a short period, which resulted in too much cash burn. Thankfully, the company managed to stay afloat and make a successful comeback by the end of the year.
Much of the company's success in staying afloat long enough to boost its profits was thanks to the Chinese government's bailout. However, the bailout was put to good use, and Nio managed to come back stronger than ever.
Who Is Tesla?
Founded in July of 2003, Tesla is an American electric vehicle and clean energy company based in Palo Alto, California. In addition to electric cars, the company also produces solar panels and related products.
CEO Elon Musk heads Tesla. Musk is a well-known billionaire business magnate best known for Tesla and his SpaceX company, which is still in its infancy. Elon Musk is originally from South Africa but has been a United States citizen since 2002.
With an incredible net worth of $197 billion, Elon Musk is considered the world's richest man. His worth is even more than that of Jeff Bezos, famed founder of Amazon. This status of "richest man in the world" as their CEO has helped Tesla gain traction.
How Do People Feel About Electric Cars?
By now, everyone has heard of electric cars, and most have seen at least one. But how do people really feel about electric vehicles and the modern push for their use?
A recent survey found that forty percent of people looking to purchase a vehicle in the future would consider an all-electric car. Among most people, however, feelings seemed mix about the electric car race. Most people felt they didn't know enough to make informed decisions.
Thankfully, attitudes towards electric cars are shifting towards a positive light as more knowledge is becoming available. As more people learn the truths behind common myths about electric vehicles, they'll likely begin considering purchases. The current market certainly shows a continued interest in electric cars.
What Are the Proven Benefits of Electric Cars?
There are many benefits to electric cars. These can be broken down into individual and community-wide benefits.
Individual Benefits
Individual benefits are defined as those affecting the owner of electric vehicles, with little to no real impact on the community. This list is not all-inclusive but includes the most significant benefits.
Practical
On an individual level, electric cars are practical. Electricity is conveniently accessible at any time of day and at uncountable locations. On the other hand, gasoline or diesel fuels aren't as widely accessible, particularly in rural locations that may only have one fueling location.
At the end of the day, owners of EVs need only plug their vehicles in. As long as they remember to do so, they'll be ready to go again in the morning. No trip to the gas station is required.
Traveling Further Than Ever
One of the biggest worries people have about electric cars is how far they'll go before needing to be recharged. There were fewer charging stations available to electric vehicles in the past, which made long-distance travel difficult. Now, however, charging stations are more widely available, including along major interstates.
In the past, electric car batteries disappointed with their traveling abilities. But these days, electric cars go further than ever on a full charge these days. Now, certain electric car models can go as far as 400 miles on a full charge.
Long-term Savings
With an electric vehicle, you'll also end up saving money in the long term, especially with rising gasoline prices. If electricity costs $0.13 per kWh in your area, fully charging an EV with a 200-mile range would only cost about $9. Compare that to the $20 or more it costs to fill the gas tank, and the savings become extraordinary over the long run.
Lower Carbon Footprint
Electric vehicles allow the individual to produce a lower carbon footprint. This is a big selling point for environmentally-conscious individuals. Every individual carbon footprint that's lowered is better for the planet.
Community-Wide Benefits
Community-wide benefits are defined as those that affect everyone, not only the owner of an electric vehicle. This list isn't all-inclusive but does include the most significant benefits.
Significantly Lowered Emissions
One lower carbon footprint is great. But what about dozens, hundreds, or even thousands of people consciously reducing their impact on the environment and ozone layer?
This considerable shift towards cleaner energy and less pollution would make significant impacts over the next few decades. In fact, enough people making a smaller carbon footprint could help make a positive impact in as little as one to five years.
Fewer emissions mean less smog, especially in large cities prone to this phenomenon. Air becomes overall cleaner, and the ozone layer protecting Earth gets a little closer to healing.
Providing Greater Fuel Diversity
Although notable, helping the environment isn't the only community-wide proven benefit of electric vehicles. These cars also help provide greater fueling diversity to the United States.
As things stand, the United States is heavily reliant on petroleum products for their fueling needs. This makes the country vulnerable to pricing fluctuations and supply disruptions. Almost all electricity is created using domestic resources, however, which is significantly more reliable.
Hybrid Cars vs. Electric Cars
Before moving to a comparison of Tesla and Nio, it's essential to look at the differences between hybrid vehicles and EVs. Although the terms are often used interchangeably, they refer to different things.
An electric car runs off only electricity and doesn't make use of gasoline or diesel. EVs are the primary discussion of this article and provide the most benefits, both financially and environmentally.
A hybrid car uses both electricity and gasoline to power the engine. The ratio of use depends on the models.
Some hybrids run primarily on electricity and use petrol only as a backup source. Others mainly use petrol but can use a small amount of electricity to get better fuel mileage. Others provide a relatively even split in terms of fuel usage.
Hybrids are not what this article is talking about. Both Tesla and Bio provide fully electric vehicles, not hybrids.
Tesla vs. Nio: Broken Down by Category
Tesla and Nio are two brands dominating the electric vehicle sector. Although there are numerous small players, these are the two racing neck and neck to win the electric car race. Before making an educated guess on who will win that race, let's break the companies down in a category comparison.
Comparing 2020 Revenues
Taking a look at how both companies did in 2020 offers a solid view of how they've been staying afloat during the pandemic and the economic slide it created. Nio reported revenue of $2.49 billion in 2020, while Tesla reported $31.5 billion for the year. In this category, Tesla dominated.
Comparing Historical Revenue
Historical revenues can help get an idea of each company's growth year over year. In 2019, Nio reported $1.19 billion in revenue while Tesla reported $24.6 billion. In 2018, Nio reported revenue totaling $720.1 million, while Tesla reported $21.46 billion.
Although Tesla has reported significantly higher revenues than Nio year-over-year, both companies see continued growth. While Tesla wins this category, the rise of both companies shows the increased interest in electric vehicles worldwide.
Comparing Electric Vehicle Costs
During economic hardships, companies with more affordable products are more likely to stay afloat versus those who produce those with higher price tags. During these uncertain times, this category merits a look and can help determine each company's livability moving forward.
Nio's entry-level sedan, the ET7, has a starting price of $58,500. It's important to note there are rumors the company is looking to manufacture more affordable electric vehicles with pricing around $75,000. To date, however, this is still a rumor and hasn't been confirmed.
Tesla has several electric vehicle options. Their cheapest model, the 2021 Tesla Model 3, has a starting price of $37,990. Their most expensive model, the 2021 Tesla Model X, starts at $79,990.
Although the Tesla Model 3 is the cheapest option, both companies have similar price tags for similar products. In the short term, Tesla would once again win. If Nio reaches their long-term goals of producing a more affordable electric car, however, their $75,000 rumored price tag would be best, hands down.
Comparing Company Lifespan
Tesla was founded in 2003, while Nio was founded in 2014. Since Tesla has been in business for eleven more years than Nio, they win this category hands down.
Looking At the Stock Marketing
Both companies were looking at financial difficulties during the pandemic, causing their stocks to dip slightly. In March 2021, Tesla had recovered somewhat at +3.69%. Nio remained at -2.57%.
As of April 13th, before the stock market opened, Tesla stocks were worth $701.98 each. The last 52-weeks, however, showed a lot of fluctuation. The 52-week high was $900.40, while the low during this time was $116.11.
Tesla isn't alone with its high fluctuations. Nio, whose stock is worth $37.14 before the market opens on April 13th, 2021, saw fluctuations, too. The company's 52-week high was $66.99, and their low during this time was $2.63.
Tesla stocks are worth significantly more than Nio for investors who have enough to buy-in. On the other hand, Nio is a more affordable investment for many, and the stocks appear to be on the rise. In sheer dollar values, however, Tesla wins hands down.
Tesla vs. Nio: Who Will Win the Electric Car Race?
After breaking down several important factors to consider them, it appears Tesla will win the electric car race. The company's been in the sector significantly longer and has a higher dollar value.
It should be said that if Nio did manage to manufacture the more affordable electric vehicle that's been on the rumor mill, it could begin a significant shift in this race. For now, however, Tesla continues to lead the race.
Do You Have More Questions About Electric Cars?
Electric cars continue to gain traction in both America and worldwide. Although China's Nio and America's Tesla have been battling for the top spot in the world's electric car race, it seems there is an obvious winner. If things continue as they are, predictions have Tesla coming out as an obvious winner.
Do you have more questions about electric cars? Or do you need auto transport for your vehicle, electric or otherwise?
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