Nio Inc. - ADR NIO Chief Executive Officer William Li on Sunday told Bloomberg that the Chinese electric vehicles maker sees rival Tesla Inc. TSLA more as an ally than a competitor.
What Happened
"We do compete against each other, but in general we are allies," Li said, as reported by Bloomberg, pointing out that the two companies are working to grab the market from gasoline-based automakers rather than each other.
"In fact, our sales kept growing since Tesla started production in Shanghai," he added.
Li's comments come days after Nio reported mixed earnings for the first quarter this year, as the COVID-19 pandemic took toll.
It posted a loss per ADS of 22 cents, narrower than the analyst consensus of 26 cents, and highlighted enhanced cost control measures taken in the quarter.
What's Next
Li told Bloomberg that the long-term growth outlook for the electric vehicles market in China remains the same despite the temporary impact from the pandemic.
Nio said in the earnings report that it expected both car sales and revenue in the second quarter to double year-on-year.
According to Li, the company has "secured sufficient funding" for its development post the $1 billion financial commitment received from a set of strategic investors back in April, Bloomberg reported.
Li added that Nio doesn't have any concrete plans to list its shares in China, even as Chinese companies listed in the United States face increased scrutiny.
"This isn't a challenge for Nio only," Li said, as per Bloomberg. "We wouldn't exclude any potential options."
Price Action
Nio shares closed nearly 4% higher at $3.98 on Friday and were mostly unchanged in the after-hours session.
Tesla shares closed 3.6% higher at $835 the same day and added another 1% in after-hours at $842.75.
Image Credit: Courtesy of Nio.
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