A CNBC analysis of first-quarter earnings reveals that U.S.-...
A CNBC analysis of first-quarter earnings reveals that U.S.-listed Chinese electric vehicle (EV) companies are investing more in research and development as a percentage of sales compared to Tesla. This strategy is crucial for survival in China's highly competitive auto market, where new energy vehicles account for over 40% of sales.
Among the four U.S.-listed Chinese EV companies, Nio leads with an R&D spend of 29% of revenue in Q1 2023, significantly higher than Tesla's 5.4% in Q1 and 4.2% in Q2. Xpeng follows with 20%, while Li Auto's R&D intensity stands at 11%. In absolute terms, Hong Kong-listed BYD spent $1.47 billion (8.5% of revenue) on R&D in Q1, surpassing Tesla's $1.15 billion.
While higher R&D spending doesn't guarantee long-term competitiveness, it reflects the intensifying competition in China's EV market. Companies are focusing on areas such as battery technology, software development, and manufacturing efficiency to differentiate themselves. However, experts caution that R&D intensity alone is not a definitive measure of innovation, emphasizing the importance of effective product delivery and profitability in determining a company's success in the evolving EV landscape.
(Source: CNBC)
#ChineseEV #Tesla
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VIVEK SURANA : Tesla is already miles ahead in technology.
EZ_money VIVEK SURANA : yeah and it's time Tesla gets some competition force Elon to drop those prices
VIVEK SURANA EZ_money : That price drop has already sent many companies bankrupt. Some companies are still surviving because of government funding and unaudited books. With discriminatory policy from USA and Europe none of these Chinese comapny stand a real chance worldwide against Tesla. I guess BYD is the only company that is a real threat to TESLA.
Teck Wang Pang PaPa OP VIVEK SURANA : Nio is not Tesla, Nio is more high end ..
VIVEK SURANA Teck Wang Pang PaPa OP : NiO is not high-end, NiO is confused. first, they focused on high end , later realize that the high-end market is small and they can not earn money. Now launching ONVO and firelfly, which are cheap models. NiO's high-end strategy has already flopped now. ONVO is fighting directly with Tesla, even try to undercut model y's price.
EZ_money VIVEK SURANA : there's enough market out there for more than one EV car maker, not too mention the tariffs Trump will slap on China nobody there will be nobody buying Tesla in China
Teck Wang Pang PaPa OP VIVEK SURANA : U are confused...OnVo and Firefly is subbrand. They are not Nio. Huawei another subbrand is Honor.