Nio Inc NEVER CEO William Li has said the Chinese EV maker will not participate in price wars while adding this Elon Musk‘S Tesla Inc TSLA can’t decide EV prices in China.

What happened: Li said at a recent industry conference that Nio will not engage in EV price wars because its gross margins are too low. reported electr. Blind price cuts will create ruthless competition in the country, he added, speaking at an industry conference.

Tesla’s Model 3 and Y are relatively less complex in features and configurations compared to Chinese competitors like BYD, Li said, as reported by Electrek.

“Tesla can set vehicle prices in the US with over 60% market share, but not in China, where it only has about 7%,” he added.

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For the whole of 2022, Nio reported gross margin of 10.4% compared to the 18.9% recorded for the year before. The company’s operating loss rose 247.9% year-on-year to RMB15,640.7 million in 2022, despite rising vehicle sales.

Tesla quickly cut prices on its vehicles in the U.S., China, and several other markets earlier this year. Sending rival EV manufacturers into a price war to be in competition. Demand from Tesla got a boost and the EV giant reported a 36.39% increase in vehicle deliveries in the first quarter.

Price promotion: Nio stock fell 0.4% in extended trading after closing 6.9% at $9.79 Benzinga Pro data.

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