Autos correspondent Pras Subramanian joins the Live show to check out Nio’s stock as the EV manufacturer reports an increase in delivery figures for August.
Video Transcript
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PRAS SUBRAMANIAN: Chinese EV maker reported over 10,000 cars in the latest July quarter and– up 6% versus July and up 80% versus a year ago– but shares are dropping because its Chinese rivals Li Auto and Xpeng reported big drops in August deliveries here. Investors seem to be concerned about the Chinese economy facing more headwinds due to COVID shutdowns and part shortages. Sort of like, you know, Nio doing well here, Rochelle, but you know I think it’s a big picture thing with regards to what’s happening in China as there are still more COVID shutdowns happening.
– And it’s like you’re saying, it’s sort of the best out of a bunch that’s really struggling at the moment. And ever since China cut its subsidies for domestic purchases of Chinese cars, we saw that start to go down. You have competition from Tesla, of course. So definitely one to keep an eye on there, but it’s interesting to see at least Nio at least doing better than some of the others, and keeping an eye on that space.
– Yeah, it certainly is a tough time for so many of these companies, especially those based over in China. Pras, you mentioned the slowing economy. And then they also have competition from overseas. Tesla has time and time again really said that China is so important to their business and the success of their business. So it will be interesting to see how that all plays out at a time when China’s economy has consistently it looks like continued to slow here. And then, of course, we had the COVID lockdowns coming back so–
PRAS SUBRAMANIAN: Yeah, and Musk and company–
– –a more challenging time.
PRAS SUBRAMANIAN: Yeah, Musk and company really sort of getting through that– optimizing the factory after a short-lived shutdown and now actually making more and more cars there. So they’re doing really well in China actually.