The rally that has lifted the value of Chinese electric carmaker Nio to nearly the combined worth of auto behemoths General Motors and Ford Motor may get another boost as the company prepares to introduce its first-ever sedan on Saturday.
Nio shares soared more than 12-fold last year, and the stock added another 21 per cent in the first week of 2021, amid a growing view that electric vehicles are the future of the car industry and as Tesla’s valuation climbed to new heights.
As investors were gripped by a mania for all things related to EVs in 2020, smaller and newer companies like Nio have become the latest stock-market darlings as people search for the next Tesla.
Nio is expected to introduce its first saloon car at its annual “Nio Day” event in Chengdu, China. The saloon – possibly the first of several – will be the latest addition to Nio’s current portfolio that includes multiple electric SUVs and a coupe.
The company reached the milestone of producing and delivering more than 5,000 vehicles in a month in October. Nio has 12 buys, five holds and two sells among analysts and an average price target at $49. Its American Depositary Receipts closed up 8.6 per cent at a record high of $58.92 on Friday.
Its new saloon may compete with Tesla’s Model 3 in China, which is Tesla’s most affordable car. Model 3 prices start from 249,900 yuan ($38,597) in China, and its base model can travel 263 miles on a single charge. Nio’s Chinese rival XPeng also teased a new saloon on Thursday with a picture on Twitter.
It “fits a theme we’ve been talking about for a while”, Roth Capital Partners analyst Craig Irwin said. “Tesla does not operate in a vacuum, while valuation seems to assume limited if any real competition.”
While Nio has often been called the biggest Tesla rival in China, analysts do not expect it or other smaller players in the industry to truly challenge its leadership in the space. Tesla’s market value itself – at a whopping $834 billion – doesn’t seem to reflect the possibility of viable competition.
“I wouldn’t expect too much impact on Tesla/EV but more so on the gasoline vehicles losing share to this new Nio sedan,” Deutsche Bank analyst Edison Yu said, discussing Nio’s event.
Mr Yu believes Nio’s new car will be positioned as a premium flagship saloon, and thus comparable to BMW’s 5 Series and 7 Series, and Audi’s A7. He expects it to sport high-end features, such as dual-motor all-wheel-drive, a range of over 400 miles, a sporty front grille, and a suite of next-generation autonomous driving-related sensors.
The saloon is also expected to be pricier than Tesla’s Model 3, which is more of a BMW 3 Series competitor, Mr Yu said. “I would guess over 350,000 yuan depending on the size of battery,” he added.
Countdown to Zero exhibition will show how disease can be beaten
Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a month before Reaching the Last Mile.
Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
RACE CARD
4.30pm: Maiden Dh80,000 1,400m
5pm: Conditions Dh80,000 1,400m
5.30pm: Liwa Oasis Group 3 Dh300,000 1,400m
6pm: The President’s Cup Listed Dh380,000 1,400m
6.30pm: Arabian Triple Crown Group 2 Dh300,000 2,200m
7pm: Wathba Stallions Cup Handicap (30-60) Dh80,000 1,600m
7.30pm: Handicap (40-70) Dh80,000 1,600m.
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Zayed Sustainability Prize
RESULTS
5pm: Sheikh Mansour bin Zayed Al Nahyan Racing Festival Purebred Arabian Cup Conditions (PA) Dh 200,000 (Turf) 1,600m
Winner: Hameem, Adrie de Vries (jockey), Abdallah Al Hammadi (trainer)
5.30pm: Sheikha Fatima bint Mubarak Cup Conditions (PA) Dh 200,000 (T) 1,600m
Winner: Winked, Connor Beasley, Abdallah Al Hammadi
6pm: Sheikh Sultan bin Zayed Al Nahyan National Day Cup Listed (TB) Dh 380,000 (T) 1,600m
Winner: Boerhan, Ryan Curatolo, Nicholas Bachalard
6.30pm: Sheikh Sultan bin Zayed Al Nahyan National Day Group 3 (PA) Dh 500,000 (T) 1,600m
Winner: AF Alwajel, Tadhg O’Shea, Ernst Oertel
7pm: Sheikh Sultan bin Zayed Al Nahyan National Day Jewel Crown Group 1 (PA) Dh 5,000,000 (T) 2,200m
Winner: Messi, Pat Dobbs, Timo Keersmaekers
7.30pm: Sheikh Mansour bin Zayed Al Nahyan Racing Festival Handicap (PA) Dh 150,000 (T) 1,400m
Winner: Harrab, Ryan Curatolo, Jean de Roualle
8pm: Wathba Stallions Cup Handicap (PA) Dh 100,000 (T) 1,400m
Winner: AF Alareeq, Connor Beasley, Ahmed Al Mehairbi
Scoreline
Al Wasl 1 (Caio Canedo 90 1')
Al Ain 2 (Ismail Ahmed 3', Marcus Berg 50')
Red cards: Ismail Ahmed (Al Ain) 77'
