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Nissan stock jumped 7.25% after the company unveiled its new all-electric crossover called Ariya as part of a four-year business plan.
Nissan electric vehicles are slowly dominating the large Asian, Europe, and also North American markets. The race for the best electric vehicles that have tapped into the latest technology keeps heightening by the day. Early Wednesday, Nissan Motor Co Ltd (TYO: 7201) unveiled a new all-electric crossover called Ariya to compete with other EVs in the market. According to the company, the release is part of its four-year business plan meant to see it through financial profitability.
Ariya is one of its 12 models that are meant to be released by the end of next year, according to its plan ‘Nissan Next’. Being the first model to be delivered to the consumers, its reception will largely determine when the rest will be released and what changes they might tweak.
The electric vehicle industry is meant to deliver a safe environment heavily polluted by the fuel ran engines. Most developed countries led by China have put a limit on the number of sales the fuel engines can be sold to offer a chance for the EVs to compete and find a place in the market.
However, the competition is high, which on one side is a benefit to the consumers and a challenge for the automakers to balance their ledgers.
EV company like Tesla Inc (NASDAQ: TSLA) is miles ahead with several models already in the market and also delivering to different global markets. With such a level of competition, the quality and design will be top-notch to capture as many customers as possible.
Nissan Electric Vehicles
Transitioning from developing fuel ran engines to electric vehicles will be one of the most capital intensive endeavors that most traditional automakers will attempt.
This is because they have heavily invested for years in developing fine-tuned fuel engines and the infrastructure is still angled towards that. As the global demand for EV rises by the day, the companies will have to shift gears abnormally to fit in the market, otherwise, they will be risking being left out on the wave.
With a market cap of 1.53 trillion Japanese Yen, the company might be in a better place to deliver and change its course by the next four years as their plan dictates.
“Ariya is Nissan’s next chapter in physical form,” Nissan Chief Operating Officer Ashwani Gupta said during a virtual roundtable. “It is a catalyst of change in our product thinking.”
Meanwhile, Nissan stock is 7.25% up, at 419 JPY.