China's electric car startups risk same pitfalls as Tesla

Xpeng and NIO plan to raise $6bn, but production shortfalls show challenges ahead

20180817  NIO

NIO, the Shanghai-based electric vehicle startup, aims to raise as much as $1.8 billion through the IPO. (Photo by Akihide Anzai)

NIKKI SUN, Nikkei staff writer.

GUANGZHOU -- Chinese electric vehicle startups NIO and Xpeng are setting themselves up to mass-produce next-generation "smart vehicles," having recently announced ambitious fundraising targets.

Both companies hope that going beyond clean power can give their brands an edge over global rivals, but doubts have been cast over their ability to deliver such vehicles on a big enough scale.

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