The rise of inexpensive Chinese electric vehicles has upped the pressure on legacy automakers who have turned to suppliers, from battery materials makers to chipmakers, to squeeze out costs and develop affordable EVs quicker than previously planned.
a comment in the article you linked says this better than I ever could:
This whole narrative about alleged “subsidies” to Chinese EV makers and them “losing $35,000 per vehicle” is pure propaganda. Firstly, that company - Nio - is a relatively new one and it is still ramping up its production. A year ago when they were not selling EVs yet but invested a lot in R&D it could be said that they were losing infinite amount of money per vehicle - because infinity is what you get from dividing by zero. Both this logic and this math are erroneous. Tesla was losing money for years even after it started making and selling its cars.It kept going by taking money from investors in exchange for shares. That is exactly what the Chinese EV companies do. So secondly, those are not “subsidies” but investments, even if the money comes from Chinese government entities. This article states itself that local governments take stock in companies in exchange for investment - exactly the same thing Tesla investors did.
The article also talks about BYD, a more established manufacturer than Nio, that is making profits selling electric cars.
a comment in the article you linked says this better than I ever could:
The article also talks about BYD, a more established manufacturer than Nio, that is making profits selling electric cars.
just google chinese ev car graveyard https://i.imgur.com/vjtkj6J.png
not only are they selling at a loss, most of the sales aren’t even real