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Chinese Tesla rival Nio cuts 10% of workforce as CEO predicts ‘intense competition’
Elon Musk’s Tesla automaker started lowering the price of its vehicles in China last year, which forces competitors to do the same. The impacted Chinese electric carmaker "Nio" has been examining its two-year operational plan over the past two months. The company determined the business priorities and created a thorough plan for organizational and business optimization, by laying off 10% of its employees amid severe competition.
By November, the job cuts will be completed. Like many Chinese electric vehicle startups, Nio has faced challenges from fierce competition, low customer confidence in the second-biggest economy in the world, and a pricing war that was started by Elon Musk's Tesla.
Importance
Since EVs market starting to grow in Thailand, you'll notice more and more EV driving along the road. This news is interesting for people who considering to change from gasoline car to EV. It shows us how the producers in the market competing and how Elon Musk develop a strategy to reduces Tesla price, by using automaker (machine) to produce EVs instead of labors. The lower the EV price, the higher the demand. Which the strategy impact other Chinese competitors and they need to adapt and develop a new strategy to stay in the EV market amid this fierce pricing war. Considering from this news, Chinese producers might produce higher quality EVs than Tesla's to bring back customers. Consumers can use these EV market news to help considering buying decision.
Reference
https ://www . cnbc. com /2023/11/03/chinese-tesla-rival-nio-cuts-10percent-of-workforce.html?recirc=taboolainternal