NIO which translates into “Blue Sky Coming“ in Chinese, has been one of the hottest stocks of 2020.
You might have heard that this Chinese company led by CEO William Li sells electric cars and… yep, that’s pretty much all they do. The company has delivered 31,430 vehicles so far in 2020 with roughly 16% (5,055 units) delivered in October 2020, an increase of 100.1% year-over-year. But let’s have a look at what vehicles JAC Motors produces for NIO (yes, NIO outsources the production) and how much they cost.
Product line:
ES6 – NIO’s most sold vehicle is a 5-seater SUV from 2018 with range* up to 610 km and 0-100 km/h in 4.7sec. The price starts at $52000 and the company delivered 2,695 units in October. Check it out here: www.nio.com/es6
EC6 – NIO started producing this ES6 coupe version recently in 2020. Range* is up to 615 km, 0-100 km/h in 4.5sec. The price starts at $55000 with 883 units delivered in October. Check it out here: www.nio.com/ec6
EC8 – this 6- or 7-seater SUV from 2018 is NIO’s flagship and second most popular vehicle. It boasts a range* of up to 580 km and 0-100 km/h in 4.9sec. The price starts at $70000 and NIO delivered 1,477 units in October. Check it out here: www.nio.com/es8
EP9 – this beautiful supercar does 0-100 km/h in 2.7sec and debuted on the same day NIO was established. It is not being mass produced, rather only occasionally. The company has delivered only approx. 16 units with a price tag of $1.5Mio. EP9 is especially important for NIO’s image as a luxury brand. Let Richard Hammond sum it up for you: www.youtube.com/watch?v=qbSB_J06fA8 You can also check it out here: www.nio.com/ep9
EVE – this concept is NIO’s vision of the future. It is fully autonomous and equipped with futuristic features. EVE is especially important for NIO’s image as an innovative brand. See the future here: www.youtube.com/watch?v=tkoDqS9yhRE *With 100kWh battery pack.
Battery Swap Technology: "I don't recharge, I swap!"
What gives NIO an edge is its battery swap technology. The technology enables NIO users to exchange depleted batteries for new ones in a matter of minutes. NIO claims it has deployed over 155 battery swap stations across 64 cities in China and completed over 1 Mio battery swaps. The fee for the service varies greatly from place to place.
Battery as a service: "BAAS"
This is where things get really interesting financially. NIO introduced Baas in 2020. It gives buyers the option to purchase one of the SUV trio without ownership of the battery resulting in a discount of over $𝟏10k. But don’t cheer just yet, you have to lease the battery for about $150 a month. That makes it around 5 and 1/2 years to break even. It’s an ingenious idea as it lowers the entry price for the vehicles making NIO cars available to more people. Individuals under this plan are entitled to 6 free battery swaps a month.
Robotaxis: Goodbye taxi drivers
Another boost for NIO’s revenue might come from newly established cooperation with the Intel subsidiary in Israel, robotaxi company Mobileye. Under the deal, NIO will engineer and manufacture a self-driving system designed by Mobileye and supply Mobileye's future robotaxi fleet with its vehicles. So don't be surprised to get picked up by one of NIO's SUVs one day on your way home.
Marco Polo: Blue sky coming to the old continent
NIO’s European expansion efforts are underway under the codename Marco Polo Project. NIO plans to start selling ES8 and ES6 models in Europe in the second half of 2021. That’s good news for European NIO shareholders as they might soon have a chance to turn their shares into an actual NIO car.
Sources: www.nio.com/news/all-new-nio-es8-smart-electric-flagship-suv-commences-delivery www.topgear.com/car-reviews/nio/es6/owning www.nio.com/news/nio-launches-smart-electric-coupe-suv-ec6 www.carmagazine.co.uk/car-reviews/nio/nio-ep9-2017-review/ www.theverge.com/2019/3/5/18252244/nio-ev-startup-factory-shanghai-cancelled-jac-motors www.barrons.com/articles/nio-stock-ev-battery-swap-service-rent-lease-51597938785 www.theverge.com/2015/7/2/8879395/formula-e-electric-racing-series-us https://techtime.news/2019/11/06/mobileye-8/ seekingalpha.com/pr/18067348-nio-inc-provides-october-2020-delivery-update www.yicaiglobal.com/news/china-ev-maker-nio-marco-polo-project-to-speed-exports-to-europe