NIO claims it made Model Y competitor cheaper and better than Tesla as it warns to hold purchase until Alps unveiling

Recently, the CEO of NIO advised that those who are considering the purchase of a Model Y after the $5,900 in sales incentives Tesla put out should wait a bit and see what NIO's new Alps brand will come up with first.

This can be read as an admission that the first Alps vehicle will be a direct Tesla Model Y competitor and new spy shots of the camouflaged test mule even indeed show a "better than Model Y" sticker on the rear window.

Tacky as that may sound, the Alps brand is NIO's venture into the midrange EV market and it is tailored towards a younger and more dynamic demographic with less disposable income.

NIO will also have a direct answer to the mass market Tesla Model 2 with a new Firefly brand in 2025 that will be churning out electric vehicles in the $15,000-$25,000 range, whereas the Alps brand will be positioned in the $25,000-$40,000 segment. 

During NIO's quarterly results press conference today, the CEO said that it has managed to make a Model Y competitor with a manufacturing cost that is 10% lower than Tesla's bill of materials for the world's top selling vehicle. Previously, he said that Chinese automakers have up to 20% cost advantage over other car manufacturers and should capitalize on that.

This would result in a compact electric SUV with 800V charging architecture and battery swap capabilities that starts from just $27,800, whereas in China the Model Y starts from the equivalent of $35,960. NIO's Model Y competitor under the Alps brand will be unveiled next quarter and start shipping to customers in Q3.

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