Chinese automaker NIO Inc. (NYSE:NIO) has pushed back against the President Donald Trump administration’s move to declare the Tesla Inc. (NASDAQ:TSLA) rival a Chinese military company.
Nio Threatens Legal Action
On Tuesday, Nio released an official statement condemning the decision by the Trump administration, saying that the inclusion of the automaker in the list was “not justified” and threatened to take legal recourse if necessary.
“The Company will proactively engage with the U.S. Department of Defense to correct this inclusion on the CMC List,” Nio said. The automaker also denied having ties to the Chinese military, saying that it was “not a Chinese military company or a military-civil fusion contributor to the Chinese defense industrial base.”
Pentagon Releases Chinese Company List
The statement comes as the Pentagon released a list of Chinese companies, including BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF), Baidu Inc. (NASDAQ:BIDU) and Alibaba Group Holding Ltd. (NYSE:BABA), alleging ties to China’s military or defense-industrial sector.
Recently, Chinese regulators have tightened restrictions on citizens investing in U.S.-based stocks. New regulations require all overseas stock purchases to go through approved channels.
Notably, Trump recently visited Beijing to attend a summit with China’s President Xi Jinping aimed at bolstering trade ties between the two nations. Trump was accompanied by several U.S. tech leaders, including NVIDIA Corp (NASDAQ:NVDA) CEO Jensen Huang and Tesla CEO Elon Musk.
Nio Deliveries Surge, Tesla Charts Chinese Growth
Nio recently reported a surge in its deliveries, with May deliveries totaling over 37,705 vehicles, which were up 62.3% YoY from May 2025’s figures.
Tesla also charted a growth in its Chinese sales, with data released by the China Passenger Car Association (CPCA) showing that the EV giant sold over 47,821 units via retail sales in May. The figure represented a 22.6% YoY surge when compared to May 2025.
According to Benzinga Edge Rankings, Nio offers excellent Momentum, but fails to offer a favorable price trend in the Short, Medium and Long term.
Price Action: NIO shares were up 3.17% to $5.53 during premarket trading on Tuesday.
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