Analysis of China’s Electrical Vehicles Market Competition: Taking Tesla and NIO and Xpeng as Examples

Abstract

Consumers are increasingly turning to electric vehicles to reduce greenhouse gas emissions and to avoid the rising cost of gas vehicles. The global electric vehicle market is expanding sharply, especially the new electric vehicle market in China. This article presents Tesla, NIO, and Xpeng's market value of equity, the market value of debt, and other data based on their financial reports. This article also compares and analyzes the financial performance of these three companies and makes effective investment recommendations for investors. Investors are advised to invest in Tesla with confidence because the company is anticipated to have steady growth and prosperity in the Chinese electric vehicles market. When Xpeng and NIO are compared, it is clear that NIO has a more steady development trajectory. Investors used to make wise investments will be drawn to it because of its low equity beta. Additionally, it demonstrates that it outperforms Xpeng in terms of corporate management, sales model, and design. On the other hand, Xpeng has not demonstrated enough advantages to draw in investors.