When a company is still small in scale, choosing the right competitor is crucial. During their early startup days, both $NIO (NIO)$ and XPeng chose Tesla as their rival, while only $Li Auto (LI)$ targeted luxury brands like BMW, Benz, and Audi (BBA). After stabilizing in the extended-range market, Li Auto gradually launched rounds of offensives in the pure electric market, waiting until it grew stronger before challenging $Tesla (TSLA)$. In recent years, many industries have seen companies succeed by selecting overseas brands with slow iteration, large market space, and high profitability as competitors. By transforming new technologies into obvious incremental value that users can perceive, their chances of emerging successfully have significantly increased.
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