Tesla faces major competition in China. Meet its biggest rivals

Nio has been described as the embodiment of the threat Chinese automakers pose against their Western counterparts.

The Shanghai-based firm employs thousands of workers in research and development even as it takes a major loss on every car it sells. Nio, like BYD and other carmakers, is a major beneficiary of generous investments from local government bodies. Its factories are reportedly heavily automated, allowing for faster construction of its cars, which generally land in the premium market.

In recent months, Nio has licensed its technology to at least one startup and expanded its battery swap services to drive up its stature in the market. The latter will also help sooth consumers’ worries about range anxiety, or the fear that their EV will run out of energy before reaching a charging station.

Nio has reported strong sales this year, notching a 21.2% increase year-over-year in units sold during the January to April period. The company delivered 15,620 vehicles in April, a 134.6% year-over-year increase.