(stock symbol NIO)
Market capitalization: $67.21 billion
China-based Nio presently offers an electric sedan and two small-size electric SUV models. It was established in 2014, with no car building experience. Last year it came back from the brink of bankruptcy. It also came back from the brink of bankruptcy last year. So what makes it so hot? Enabled by an easily swappable battery technology and standardization of battery packs between the company’s model line-up, the company offers a battery subscription service that reduces the vehicle price by about $10,000, bringing that price below a similar ICE vehicle. Nio continues to grow its EV sales after more than doubling them in 2020.
The Nio vehicle is purchased without the battery and various monthly subscription services are offered including a 70.0-kWh pack with six swaps per month, priced at about $142. For those who don’t want to swap batteries but still need the pack to charge at home or at a public charger, the cost is about $12 a month.
The battery packs themselves are managed by a consortium called Weineng Battery Asset Company, Which was registered and established by NIO, Chinese battery giant Contemporary Amperex Technology Co., Limited CATL), Hubei Science Technology Investment Group Co., Ltd. and Guotai Junan International Holdings Limited. The Weineng company will purchase battery packs and, with NIO, will provide battery subscription and operation services to users.
The company plans to expand sales into Europe in 2021 but has not announced if it will also implement BaaS and battery swapping outside of China.
Nio’s market capitalization is 8.9 percent of Tesla’s.