Why is NIO down ?

While many American analysts insist buyers “don’t want electrics, they want Teslas (NASDAQ:TSLA),” Chinese brands are increasingly dominant.

BYD now sells more cars than Tesla, and Li is growing faster than Tesla. European buyers seem to be holding off on purchases, awaiting low-cost Chinese EVs.

American politicians label China a climate criminal. But it’s the U.S. that now pumps more oil than any nation ever has. China is also dominant in green technologies like solar panels and EVs. Efforts by General Motors (NYSE:GM) and Ford Motor (NYSE:F) to compete are sputtering.

The Biden administration’s incentives for buying EVs are focused on middle-income buyers purchasing made-in-America cars. But that’s not where the market is going.

The best test of these new market assumptions is Nio, which is far ahead of its rivals in its export drive. Nio has gotten $2.2 billion from Abu Dhabi to fund European exports. It will launch a low-price brand called Firefly in Europe later this year.

Li, meanwhile, is undergoing its own electric transition, with plans to launch an EV costing under $30,000.