This past weekend, China’s electric vehicle start up, Nio, introduced their very first mass produced model that is going head to head with other rivals such as Tesla. Nio’s ES8’s starting price is half of Tesla’s Model X, totaling to $67,765 compared to the Model X cost of $126,470. The electric vehicle market is booming and will still maintain a growth in sales, grabbing customers that will purchase from both brands.
The ES8 is a seven-seat car that is customizable and equipped with an artificial intelligence system. It can accelerate up to 62 miles per hour in 4.4 seconds and customers can place orders through an app. Those who choose to choose to save money can also opt in on a battery charging plan with a rental subscription set at only $181 a month. The ES8 can be charged at stations that will allow the batteries to be swapped in only 3 minutes while a mobile service also travels to car owners who need to charge their cars. The start-up company aims to build over 1,100 “Power Swap” charging stations and launch over 1,200 “Power Mobile” vehicles by 2020.
"It's hard to assume" how this will affect Tesla's sales in China, Nio Founder and Chairman William Li told CNBC over the weekend. "Maybe Tesla will sell less … after our product is out. Or probably, because the whole market is growing, they will still maintain growth in sales. It's hard to say."