China’s EV threat: A carmaker that loses $48,000 a car

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China’s EV threat: A carmaker that loses $48,000 a car
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Nio and other companies in China’s EV sector have government backing that allows them to keep growing. Read more at straitstimes.com.

SHANGHAI – Nio, a Chinese electric car company that competes with Tesla, employs 11,000 people in research and development, but sells a mere 8,000 cars per month.

Today, Nio embodies China’s dominance in electric vehicle innovation and manufacturing, underlining its threat to traditional auto powers in Europe and the United States. For Nio, the question is whether it can sell enough cars to justify its enormous research and investment effort. By contrast, Ford Motor has said that its workers earned an average of US$110,000 a year in pay and benefits. The UAW is seeking a 21.4 per cent pay rise compounded over four years, plus a paid day off each work week.

In China, he said, “the competition is so fierce that it pushes every automaker to develop new technologies”. Not all Chinese EV companies are losing money. BYD, the electric car leader in China and globally, tripled profit to US$1.5 billion in the first half of 2023. BYD makes its own batteries and is a highly efficient manufacturer.

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