China’s NIO Falters Where Elon Musk’s Tesla Excels – Market Realist

China’s NIO Falters Where Elon Musk’s Tesla Excels – Market Realist

Elon Musk
NIO Inc. (NIO), China’s popular electric car manufacturer, recently released its dismal car data for July. During the month, the company delivered only 837 cars to its customers compared to 1, 340 cars delivered in June. The data represents a 25.5% quarter-over-quarter decline and a massive 37.5% sequential decline in its car deliveries.NIO cited the voluntary battery recall of 4, 803 units of its ES8 car model for hurting its production rate in July.
The company mentioned China’s declining auto sales and rising macroeconomic concerns as other reasons for its dented deliveries. In the second quarter, NIO’s car deliveries fell 10.9% sequentially to just 3, 553 units.Tesla excels at electric car productionIf you follow electric cars, you must be familiar with Elon Musk’s American electric car manufacturer, Tesla (TSLA). .

The company, as well as its co-founder and CEO Musk, often find themselves surrounded by controversy. Tesla bears criticize the company and Musk for overstating their achievements. However, people who follow auto industry trends know that Tesla has transformed the industry as we know it today.Before Musk entered the highly capital-intensive industry with Tesla, not many automakers and consumers seemed interested in electric cars.
Even its critics can’t change the fact that Tesla and Musk have popularized electric cars in the US and around the world.Notably, Tesla has posted robust quarter-over-quarter delivery growth ranging from 110% to 221% in the last four consecutive quarters.Mainstream auto companies such as General Motors (GM) and Ford (F) have announced plans to expand their electric car production. However, their plans seem to be working well only on paper so far. .

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