Tesla Received Far More Chinese Subsidies Than Homegrown Rival Nio In 2020: Report

Tesla Inc TSLA witnessed multiple issues in China this year, culminating in a steep drop in domestic sales in July.

Against this backdrop, Tesla-backer Ark Invest's Cathie Wood said China would like local champions to dominate its domestic electric vehicle market.
Hard numbers, however, suggest China is offering a somewhat level playing field for all the players operating in the EV arena.

What Happened: Tesla received Chinese subsidies amounting to 2.213 billion yuan, or $340 million, for the 101,082 vehicles it sold in the country in 2020, the CnEVPost reported, citing data from China's Ministry of Industry and Information Technology.

Tesla began availing state subsidies in 2020, as it delivered its first locally-produced Model 3 vehicle only in early 2020.

Related Link: Is Tesla's Long-Term EV Market Leadership Under Threat?

Domestic EV Maker's Trail Tesla: Nio Inc - ADR NIO, which began delivering vehicles in 2018, received state subsidies amounting to 33.67 million yuan in 2018, 54.67 million yuan in 2019 and 497 million yuan in 2020, CnEVPost said, citing its internal analysis based on data provided by MIIT.

Since Nio outsources vehicle manufacturing to JAC, Nio does not appear in MIIT's list.

Subsidies received by Tesla are about 4.5 times than what was given to Nio. This doesn't look like an anomaly as Nio delivered 43,728 vehicles in 2020.

XPeng Inc - ADR XPEV received 248.74 million yuan as subsidies in 2020, while Li Auto Inc LI's share of subsidies was at 66.6 million yuan, the report said.

At last check Tuesday afternoon, Tesla shares rose 2.64% to $752.92 and Nio advanced 0.57% to $40.59.

Photo: Model 3 Courtesy Tesla Inc