Shares of Chinese electric-vehicle maker NIO (NYSE:NIO) were moving higher on Friday, after data showed that it beat Tesla ((NASDAQ:(TSLA))) on one key sales metric in China in April.Apple-converted-space”>
As of 11 a.m. EDT today, NIO‘s American depositary shares were up about 6.9% from Thursday’s closing price.
NIO was the best-selling brand in China’s fast-growing all-electric SUV market in April, according to new data from the China Automotive Technology and Research Center. While Tesla‘s Model Y was the best-selling electric SUV in China in April, with 5,520 units sold, NIO‘s three electric SUV models sold a combined 7,404, enough for a 23% share of the market.
Of course, that data comes with an asterisk (or at least an excuse): The Model Y production line at Tesla‘s Shanghai factory was reportedly shut down for about two weeks in April, so supplies might have been tight.
That said, demand might also have been a factor. Tesla‘s China sales fell by about 67% in April from March, as CEO Elon Musk’s feud with the Chinese government in the wake of a series of accidents and protests sent many potential buyers to other brands.Apple-converted-space”>
Auto investors who are inclined to dismiss the Tesla data should note that while Tesla managed to move 25,845 Shanghai-built vehicles in April, more than half of those (14,714) were exported.Apple-converted-space”>
Clearly, the level of Chinese demand for Teslas is in question right now. That’s bad news for the Silicon Valley carmaker’s ambitious growth plans, but it seems to be giving NIO a nice opportunity to gain market share.Apple-converted-space”>
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Fintech Zoom premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.