In the world of electric cars, Tesla is king, at least for now. In the last fast years, many Chinese EV startups started promising serious Tesla competition and it seems like Nio is the first Chinese EV brand to go after Tesla in a head-to-head matchup.
Tesla is still the most valuable and most popular EV company out there, but Nio managed to become the more successful company in China which is by far the biggest EV market. Nio, Xpeng, Li, Aiways, and many other brands are pumping out new models almost on a daily basis, but is No better than Tesla?
Nio is indeed better in some aspects, but not in all of them. Tesla is still the global EV leader and is by far the better choice for investors. No one is sure if this is ever going to change, but Tesla certainly isn’t going without a fight.
In this article, we will compare these two companies and see which one makes better cars. We will also outline why you should go for one over the other and how this comparison is likely to play out in the future.
Tesla – The EV pioneer
Ever since Tesla revealed the Model S, the company’s position on the market has been turbulent, but successful. The first car Tesla ever offered was the Tesla Roadster which really didn’t cut it for most people. Only after Tesla released the Model 3 did the company reach the heights it is on currently.
As such, the Model 3 is the best Tesla car you can buy these days with more than a million units sold worldwide. For around $45,000 the Model 3 comes with a 50kWh battery that offers around 263 miles of range and it takes full advantage of the Tesla proprietary Supercharger network. The 350-mile 80kWh top-of-the-line Model 3 costs around $60,000.
Tesla’s design is fluent, but a bit lifeless. You can certainly tell that it is a Tesla, but not all that many people are sold on the way the car looks. The interior is minimalist and refreshing, but not everyone is going to be able to get used to having no gauge cluster.
All in all, Tesla offers a premium brand name, incredible technology, and design features, and a really good Performance model.
Nio – The new kid on the block
Nio is the leading Chinese EV company tasked with stealing customers from Tesla. The upcoming Nio ET5 is likely the best Nio car to come out and is a head-on competitor to the Tesla Model 3. The ET5 starts at $51,000 which is an obvious step up from the Tesla Model 3, but the ET5 offers either a 75kWh, a 100kWh, or even a 150kWh battery with a maximum theoretical range of 600 miles.
The Nio ET5 certainly looks the part, but it is no more beautiful than the Model 3. The interior of the Nio ET5 thankfully does come with a gauge cluster, but the overall look is also strikingly similar to the Model 3. Nio does not benefit from a proprietary charging network, but it does offer something potentially even better, swappable batteries.
Nio believes that recharging huge EV batteries takes too long, so much so that that is one of the primary reasons why people don’t really like EVs all that much, By essentially swapping the battery in a matter of minutes, you get a fully charged battery but the infrastructure is far from being widespread at this stage.
It is safe to say that Nio is making moves to become one of the world’s leading EV brands, but Tesla is still at the top as it makes more sense to buy, sell, and own almost every Tesla model over a Nio.
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Conclusion – Tesla is still better
The Tesla brand name is synonymous with electric cars while Nio is still a mystery for most people. Sure, Nio manages to sell better in China, but any other foreign market still prefers Tesla. The idea of swappable batteries sounds great in theory, but in practice, it is not something that can be achieved easily.
For example, the current 100kWh Nio ES8 can be recharged through a fast DC charger from 0% to 100% in about 44 minutes. On the other hand, Tesla V3 Supercharger can recharge a fully depleted 100kWh Tesla Model S in about 30-25 minutes which is indeed better.
All in all, a Tesla car is and is likely going to be a safer investment than a Nio for the time to come. Owning a Tesla is still a lot easier for most people. As such, Nio does make great cars, but Tesla is still king.
Is Tesla company more valuable than Nio?
Yes, Tesla is the most valuable car company by quite some margin. The Tesla stock revenue multiple is 10.1x while the Nio company stock revenue multiple is 3.4x. Tesla’s market cap is over $1 trillion while Nio’s market cap is less than $30 billion which is a huge difference.
Chances are that Nio is going to continue to climb as time goes on, but hardly anyone believes that Nio will come close to Tesla anytime soon. Tesla will always be the one who started it all and that is why, for investors, Tesla is likely going to stay the number 1.
Who makes safer cars Tesla or Nio?
According to most online sources, Tesla is better than Nio when it comes to making top-notch safe cars. However, the Nio EC6 crash test has shown that the EC6 fares better than the Model 3. Some say that comparing these two is not fair because the EC6 is a more expensive car.
Either way, we can say for certain that both Tesla and Nio make safe cars and there is no need to not consider any of them due to safety concerns.
Who makes more reliable cars Tesla or Nio?
Comparing Tesla and Nio in the reliability department is incredibly difficult as Nio is only starting to offer more cars while almost all mainstream Tesla models have been around for a while. Earlier Tesla models were nowhere near as reliable as modern-day Tesla cars are.
Judging by initial reports, Nio also makes really high-quality. China is not necessarily a country known for making high-end products, but Nio managed to change that. For what is worth, Nio is likely the more reliable brand, but it’s still too early to tell for certain.