As a result of the economic development after the pandemic, Tesla’s Chinese rivals including Nio, Li Auto and Xpeng announced a sharp increase in electric vehicle supply. In view of the upsurge in demand, Wall Street analysts expect more sales growth in China in 2021.

Shares of Chinese electric car manufacturers NIO Limited (NIO), Xpeng Motors (XPEV) and Li Auto (LI) jumped in China’s slowly recovering automobile industry on Monday in the midst of strong profits. Nio shares, which increased by 1,458 percent over the past year, grew by 9.75 percent on Monday on the news.

According to the Ministry of Manufacturing and Information Technology of China, sales of electric vehicles rose by 4.4% from January to November 2020 relative to the same period last year, while overall sales of passenger cars fell by 7.6%.

Nio, unlike its rivals Xpeng and Li, became public in 2018, has a higher capitalization and a hybrid car line of three luxury SUVs. Nio is dubbed the Chinese Tesla (TSLA) and sees the firm as a strong competitor to the American company in the future.

Nio announced on Sunday that December sales (compared with last year’s value) more than doubled to 7,007 electric vehicles in December and to 17,353 units in the fourth quarter. The EC6 crossover, which was only sold in September, is now Nio’s market leader.

Nio delivered 43,728 hybrid cars for the entirety of 2020.

In the comments to the article, Nio Management acknowledged that the company’s new “battery as a service” program is gradually being recognized.

Nio’s performance in 2020 was helped by around $1 billion in financing from government investors.

In August, founder William Lee said that in the second half of 2021, beginning with Europe, the organization plans to revive strategy for international expansion.

Nio will unveil the first new electric car, a successor to the Tesla Model 3 in China, at the upcoming Nio Day event on January 9 and share advances in autonomous driving and other key innovations.

At the same time, because of the rise in output volumes at its plant in Shanghai, Tesla holds a good presence in the Chinese industry. Wall Street forecasts were beaten by Tesla’s Q4 distribution study and some analysts say that revenue in China benefited a lot.

Compared to 2019, Tesla finished 2020 with a 36 percent growth in deliveries: 499,550 electric cars, just shy of the half a million target.

Tesla announced on 1 January that it will soon launch deliveries of the Model Y, produced in a Chinese factory at a price of 339,900 yuan, which is 30 percent cheaper than the original cost and cheaper than the Nio EC6 price.

NIO Limited (NIO) was down -5.08% on Wednesday to settle at $50.50.

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