Having only served the Chinese market since its inception in 2014, NIO has decided that it’s time to see what the global market has to offer.
When you’re an EV maker whose stock is down 30% year-to-date, there’s a global semiconductor shortage, and your main is Tesla (NASDAQ: TSLA), what do you do?
You branch out, of course!
Where’s NIO off to?
NIO (NYSE: NIO) announced yesterday its ambitions to begin deliveries in Norway this year. The move would mark the Chinese EV maker’s first entry into a foreign market, having solely operated domestically since its founding in 2014.
NIO elaborated on its plans to first launch its ES8 SUV to the new market this year, followed by its ET7 sedan in 2022. The company anticipates that its local staff of 15 people will also be increased to 50 by the end of 2021. What’s more exciting is the confirmation that NIO’s Norwegian romp will start with a flagship “NIO House” store in Oslo that’s slated to open in September. Four smaller showrooms are set to open in other parts of Norway in 2022.
According to analysts, demand for the global electric vehicle market is projected to value $1.2 trillion by 2027, which represents a CAGR of 41.5 % from 2020 to 2027. This leaves a lot of market share up for grabs for NIO, even with Tesla leading the rising EV tide worldwide.
While international growth can make or break a company, now may be the best time for NIO to expand. By remaining isolationist, NIO risks falling behind its growing competition, while its recent surprise profit of $238 million in Q1 proves that its financials are moving in the right direction.
And for its first international foray, what better place to start than Norway? A country where more than half of new cars sold in 2020 were battery-powered.
2021 is going to be a big year for NIO, so investors may want to sit up and pay attention…
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