NIO is one of the biggest and most known Chinese EV companies. They are producing cars, as well as they started a new trial for high-speed EV battery swapping stations. However, the biggest breakthrough for the company was probably successful integration of their products to Norway, United Kingdom and the United States. At Apmefx we have decided to make an analysis of NIO, as the company seemed very interesting and innovative.
Trial for high-speed EV battery swapping stations [1]
NIO has begun testing faster and more efficient battery swapping stations in China as it aims to make this technology a more viable option than rival EV makers' rapid-charging technology. NIO's Power Swap Station 3.0 has the capacity to store up to 21 battery packs each and can complete a battery swap in under five minutes. Battery swapping could ease the strain on power grids during peak charging times, but it would only become feasible if batteries become more standardized. NIO is one of the few EV makers betting on battery swapping as a major power option and their rival, Tesla, said that battery swapping is riddled with problems and not suitable for widescale use, that’s why company rather focuses on their supercharges, which allows the car to charge a range of 200 miles in 15 minutes.
NIO, however, plans to have 2,300 battery swapping stations globally by the end of the year. As of March 23, they had 1,323 in operation and intend to have 900 of the latest power swap stations operating this year. According to Shen Fei, NIO's senior vice president for power management, nearly 60% of the power replenished for NIO cars in February was via battery swapping, while 23% was from home chargers. Only less than 10% of NIO users utilized public chargers, while 80.5% of the power charged from NIO's 14,000 nationwide chargers was for non-NIO users, including Tesla and BYD vehicles.
NIO stock overview [2]
Stocks of NIO were primarily listed on New York Stock Exchange, however they applied and carried out secondary listing in Hong Kong last year. The ticker in USA is “NIO”. The price of a stock is currently at 8,93 USD, which seems like a very good entry point, because the highest price it has reached was in January 2021, when it was valued at 57 USD per share.* After that, there was quite a downfall, however, company seems to be constantly evolving and pushing for new improvements. Market capitalisation of NIO is currently at 14,76 billion USD.
Movement of NIO stocks in the last five years. (Source: Investing) *
Included on the list of 3 EV stocks to buy [2]
Investorplace has published a list of 3 EV stocks to buy for 100% returns. The list included: Tesla, Solid Power, and NIO. For the latest, explanation was that NIO's stock has fallen by 60% in the past six months , which has disappointed investors. Despite this, some believe that the downside risk is limited and there is potential for the stock to trade at 20 USD in the next 12 months. NIO's revenue grew by 37,2% in 2022, but the vehicle margin decreased by 640 basis points to 13,7%.* Vehicle deliveries and margins are expected to remain low in 2023. However, NIO ended 2022 with 6,6 billion USD in cash and equivalents, which provides flexibility for international expansion and product development. NIO plans to launch five new models in 2023 and expand aggressively in Europe.
Conclusion
NIO is an innovative Chinese EV company that has started a trial for high-speed EV battery swapping stations. The company plans to have 2,300 battery swapping stations globally by the end of the year and has a goal to launch five new models in 2023. There was also a nice revenue growth last year. Company shows clear stability and desire for expanding, which makes it an interesting pick. [1]
Peter Svoreň, executive director of APME FX
* Past performance is no guarantee of future results.
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.
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[2]https://www.investing.com/equities/NIO-inc
[3] https://finance.yahoo.com/news/3-ev-stocks-buy-100-123000007.html
