A Thread on $NIO!
This thread will gives an overview of $NIO, the Chinese EV maker, and covers what's special about $NIO and risks about investing in $NIO
This thread will gives an overview of $NIO, the Chinese EV maker, and covers what's special about $NIO and risks about investing in $NIO
1. Vision & Purpose – $NIO's Chinese name, means “Blue Sky Coming”. $NIO's missions is to shape a joyful lifestyle by offering premium smart electric vehicles (EVs). $NIO aims to be the company that best satisfy customers. $NIO values customer experience over everything.
2. Strong Support from Big names
$NIO's founder, William Li, have support from many big Chinese names, including Pony Ma (Founder of Tencent), Lei Jun (Founder of Xi Mi), Liu Qiangdong (Founder of JD), Li Xiang (Founder of Autohome) Zhang Lei (Founder of Hillhouse Capital Group)
$NIO's founder, William Li, have support from many big Chinese names, including Pony Ma (Founder of Tencent), Lei Jun (Founder of Xi Mi), Liu Qiangdong (Founder of JD), Li Xiang (Founder of Autohome) Zhang Lei (Founder of Hillhouse Capital Group)
3. Support from Chinese Government
Hefei city government has injected 7 billion RMB of capital into $NIO in 2019. In 2021, Hefei government and $NIO have agreed to invest 50 billion RMB together to build a World-Class Smart EV Industrial Park.
Hefei city government has injected 7 billion RMB of capital into $NIO in 2019. In 2021, Hefei government and $NIO have agreed to invest 50 billion RMB together to build a World-Class Smart EV Industrial Park.
4. A Premium Brand
$NIO aims to be the electric version of Benz, BMW and Audi. $NIO cars have an average retail price of around 400k RMB (62k USD). $NIO uses premium materials for both interior and exterior.
$NIO aims to be the electric version of Benz, BMW and Audi. $NIO cars have an average retail price of around 400k RMB (62k USD). $NIO uses premium materials for both interior and exterior.
4(1).
All $NIO's cars are equipped with car body made with 95%+ of aluminum, handmade premium leather, Germany made air suspension system, dual electric motor across all NIO vehicles and top-rated performance.
All $NIO's cars are equipped with car body made with 95%+ of aluminum, handmade premium leather, Germany made air suspension system, dual electric motor across all NIO vehicles and top-rated performance.
5. $NIO House
NIO has established many NIO house as the second living room, forums, lab, gallery, library, joy camp and café for NIO owners. NIO regularly/weekly holds many owner connection, family and social events in NIO house to create a closely connected NIO community.
NIO has established many NIO house as the second living room, forums, lab, gallery, library, joy camp and café for NIO owners. NIO regularly/weekly holds many owner connection, family and social events in NIO house to create a closely connected NIO community.
6. $NIO Community
Because of $NIO house and many regular $NIO events, $NIO has the most closely connected car owners group in China. The $NIO community has provided many supports to $NIO. The $NIO community is a key reason why many $NIO owners really love $NIO!
Because of $NIO house and many regular $NIO events, $NIO has the most closely connected car owners group in China. The $NIO community has provided many supports to $NIO. The $NIO community is a key reason why many $NIO owners really love $NIO!
6(1).
According to a survey, more than 80% of $NIO owners have recommended $NIO to their friends and families. During Covid, more than 69% of $NIO orders has come from old $NIO customers recommendations.
According to a survey, more than 80% of $NIO owners have recommended $NIO to their friends and families. During Covid, more than 69% of $NIO orders has come from old $NIO customers recommendations.
6(2).
Fun fact: More than 1300 $NIO owners regularly volunteers and work as a part-time salesman for $NIO, helping $NIO sell cars! One $NIO owner has helped $NIO sold 260 cars!
P.S. $NIO only gave these owners discount coupons for $NIO products but not any cash rebate.
Fun fact: More than 1300 $NIO owners regularly volunteers and work as a part-time salesman for $NIO, helping $NIO sell cars! One $NIO owner has helped $NIO sold 260 cars!
P.S. $NIO only gave these owners discount coupons for $NIO products but not any cash rebate.
6(3).
All these illustrates how much $NIO owners love $NIO
All these illustrates how much $NIO owners love $NIO
7. Awards
$NIO's ES8 ranked highest in J.D.Power’s Inaugural China New Energy Vehicle Experience Index (least problems per 100 cars). It also won third place of EuroCarBody 2019 award of the technology oriented premium vehicle segment.
$NIO's ES8 ranked highest in J.D.Power’s Inaugural China New Energy Vehicle Experience Index (least problems per 100 cars). It also won third place of EuroCarBody 2019 award of the technology oriented premium vehicle segment.
7(1).
$NIO's ES6 also won "Best of Best" Exterior Premium Brand at the Automotive Brand Contest.
$NIO's ES6 also won "Best of Best" Exterior Premium Brand at the Automotive Brand Contest.
8. $NIO Munich Global Design center
$NIO's founder said: “Wherever there are excellent talents that we need, we will set up an office there.” As Germany is well known for car design, NIO set up their Munich global design center, demonstrating willingness to perfect their cars.
$NIO's founder said: “Wherever there are excellent talents that we need, we will set up an office there.” As Germany is well known for car design, NIO set up their Munich global design center, demonstrating willingness to perfect their cars.
9. Premium Service
There is a famous saying in China "NIO sells their service and give $NIO owners their car for free.”
NIO has been crowned as the car maker that provides the best service (by far) in China, which allows owners to feel superior and served.
There is a famous saying in China "NIO sells their service and give $NIO owners their car for free.”
NIO has been crowned as the car maker that provides the best service (by far) in China, which allows owners to feel superior and served.
9(1).
(which are quite important for Chinese people:)
Some examples of $NIO's service: Original $NIO owner is entitled to lifetime free warranty, lifetime free roadside rescue and car connectivity services.
(which are quite important for Chinese people:)
Some examples of $NIO's service: Original $NIO owner is entitled to lifetime free warranty, lifetime free roadside rescue and car connectivity services.
9(2). One Click for Service
$NIO provides door to door valet services by their roadside service specialists which provides basic repairs and maintenance at doorstep.
$NIO provides door to door valet services by their roadside service specialists which provides basic repairs and maintenance at doorstep.
9(3). One Click for Power (24/7 On-Call Valet Charging)
$NIO owners enjoys up to 12 times per year free out of town power service with $NIO power mobile, a convenient portable power bank for $NIO vehicles. A power mobile can be summoned on the spot with one click on the $NIO app.
$NIO owners enjoys up to 12 times per year free out of town power service with $NIO power mobile, a convenient portable power bank for $NIO vehicles. A power mobile can be summoned on the spot with one click on the $NIO app.
10. $NIO Battery Swapping Technology
NIO Power Swap 2.0 can automatically perform a battery swap in 3-5 minutes. A Power Swap can serve 312 cars a day. NIO currently has 219+ battery swap stations.
NIO Power Swap 2.0 can automatically perform a battery swap in 3-5 minutes. A Power Swap can serve 312 cars a day. NIO currently has 219+ battery swap stations.
10(1).
NIO has partnered with PetroChina Company $PTR to install 5000 battery swap stations in China by 2025. A NIO owner can enjoy up to 6 free battery swap per month (if the owner do not have a charger install at home).
NIO has partnered with PetroChina Company $PTR to install 5000 battery swap stations in China by 2025. A NIO owner can enjoy up to 6 free battery swap per month (if the owner do not have a charger install at home).
10(2).
Fun fact: In a small town, $NIO owners has proposed to crowdfund their own battery swap station. $NIO's VP then connected with owners and made it happened. This shows $NIO's willingness to listen to their customers and provide the best possible service.
Fun fact: In a small town, $NIO owners has proposed to crowdfund their own battery swap station. $NIO's VP then connected with owners and made it happened. This shows $NIO's willingness to listen to their customers and provide the best possible service.
10(3).
With battery swapping, regular super chargers, home chargers and one click for valet charging, $NIO seeks to provide the best charging experience for EVs in China.
With battery swapping, regular super chargers, home chargers and one click for valet charging, $NIO seeks to provide the best charging experience for EVs in China.
11. Battery as a Service (BaaS)
$NIO's BaaS allows buyers to only buy the car and rent the battery. The initial price of a $NIO with BaaS is around 20%-35% lower than without BaaS. Currently, more than 55% of new $NIO customers have chosen BaaS when they purchased their $NIO.
$NIO's BaaS allows buyers to only buy the car and rent the battery. The initial price of a $NIO with BaaS is around 20%-35% lower than without BaaS. Currently, more than 55% of new $NIO customers have chosen BaaS when they purchased their $NIO.
11(1). Advantage of BaaS
BaaS allows buyers to only bear the depreciation of the vehicle but not the battery, which provides a peace of mind to people who fear that battery may quickly decay or depreciate. This is especially a selling point in China.
BaaS allows buyers to only bear the depreciation of the vehicle but not the battery, which provides a peace of mind to people who fear that battery may quickly decay or depreciate. This is especially a selling point in China.
11(2).
BaaS provides greater flexibility for $NIO owners. When $NIO comes up with a battery with greater capacity, $NIO owners can easily upgrade their old battery to newer and bigger ones. Early NIO owners with a 70kWh battery can easily upgrade to a 100kWH battery.
BaaS provides greater flexibility for $NIO owners. When $NIO comes up with a battery with greater capacity, $NIO owners can easily upgrade their old battery to newer and bigger ones. Early NIO owners with a 70kWh battery can easily upgrade to a 100kWH battery.
11(3).
$NIO owners can rent a 100kWh battery for only a short period of time to satisfy their rare longer road trip needs. (upgrades the range from 400+km to 600+km)
$NIO owners can rent a 100kWh battery for only a short period of time to satisfy their rare longer road trip needs. (upgrades the range from 400+km to 600+km)
12. Navigate on Pilot (NOP)
NIO pilot works assist drivers and reduce driving fatigue on highway. NOP is currently on L2/L2+. Reviewers have said that NOP is the 2nd best highway autopilots system in China, only behind Xpeng’s Navigation Guided Pilot.
NIO pilot works assist drivers and reduce driving fatigue on highway. NOP is currently on L2/L2+. Reviewers have said that NOP is the 2nd best highway autopilots system in China, only behind Xpeng’s Navigation Guided Pilot.
13. $NIO Autonomous Driving (NAD)
In $NIO's newest ET7, $NIO sets to debut their newest autonomous driving system, NAD. The performance of NAD is yet to be shown, however, NAD does signals NIO’s effort to be a part of the leading pack of the autonomous driving race.
In $NIO's newest ET7, $NIO sets to debut their newest autonomous driving system, NAD. The performance of NAD is yet to be shown, however, NAD does signals NIO’s effort to be a part of the leading pack of the autonomous driving race.
14. $NIO Nomi
Nomi is a fun interactive voice control AI assistant that acts like Apple Siri for a car. Nomi brings joy to family. Nomi allows drivers to voice commend to open air conditioning, heat conditioning, massage, windows, play pause music, navigate, take photos etc.
Nomi is a fun interactive voice control AI assistant that acts like Apple Siri for a car. Nomi brings joy to family. Nomi allows drivers to voice commend to open air conditioning, heat conditioning, massage, windows, play pause music, navigate, take photos etc.
15. Deliveries
$NIO has delivered 7102 vehicles in April 2021, which represents a 125.1% YOY increase. A slight decrease from March, where NIO delivered a record 7257 vehicles. Cumulatively, NIO has delivered 102803 vehicles.
$NIO has delivered 7102 vehicles in April 2021, which represents a 125.1% YOY increase. A slight decrease from March, where NIO delivered a record 7257 vehicles. Cumulatively, NIO has delivered 102803 vehicles.
15(1)
$NIO, $Li, $Xpev are the three main Chinese EV makers. As shown below, $NIO are the leading Chinese EV maker in terms of delivery (but behind $TSLA).
$NIO, $Li, $Xpev are the three main Chinese EV makers. As shown below, $NIO are the leading Chinese EV maker in terms of delivery (but behind $TSLA).
16. International Expansion
$NIO has planned to start expand internationally to Norway in September 2021. Norway has been chosen as 65% of 2021 new vehicles sales are expected to be EVs.
$NIO has planned to start expand internationally to Norway in September 2021. Norway has been chosen as 65% of 2021 new vehicles sales are expected to be EVs.
16(1).
International expansion is especially important for $NIO, because China, despite being the largest car market, only represents around 30% of the global car market.
International expansion is especially important for $NIO, because China, despite being the largest car market, only represents around 30% of the global car market.
17. $NIO Norway User Advisory Board
As part of $NIO's international expansion, $NIO created their Norway User Advisory Board for $NIO owners to join and provide ideas on local services, quality, charging stations, NIO house etc.
As part of $NIO's international expansion, $NIO created their Norway User Advisory Board for $NIO owners to join and provide ideas on local services, quality, charging stations, NIO house etc.
17(1).
This is a prime example of NIO’s willingness to listen to their customers and efforts to provide the best service possible to all NIO’s customers.
This is a prime example of NIO’s willingness to listen to their customers and efforts to provide the best service possible to all NIO’s customers.
18. Risks
With all the basics & pros of NIO covered, let's now cover some risks of NIO too!
With all the basics & pros of NIO covered, let's now cover some risks of NIO too!
19. Risks - Costs
$NIO pride itself with their premium services as $NIO wants to be the best company that satisfy customer needs. With all premium services, naturally costs will be high. This bags the question – will $NIO turn a profit? What kind of margins will $NIO be making?
$NIO pride itself with their premium services as $NIO wants to be the best company that satisfy customer needs. With all premium services, naturally costs will be high. This bags the question – will $NIO turn a profit? What kind of margins will $NIO be making?
20. Risks - Not Vertically Integrated
$NIO, unlike Tesla, is not vertically integrated. $NIO's strategy is to pull all the best suppliers in China to produce the best cars. $NIO cars are manufactured by JAC (AnHul Jianghual Automobile Group).
$NIO, unlike Tesla, is not vertically integrated. $NIO's strategy is to pull all the best suppliers in China to produce the best cars. $NIO cars are manufactured by JAC (AnHul Jianghual Automobile Group).
20(1).
This means that $NIO may be limited as to how much $NIO can reduce its costs.
This means that $NIO may be limited as to how much $NIO can reduce its costs.
21. Risks - Limitations of being a premium brand
$NIO aims to become the electric version of Benz, BMW, or Audi. This may limit $NIO's total addressable market. Benz, BMW and Audi each sold around 2 million vehicles per year and combine for around 10% of global car sales.
$NIO aims to become the electric version of Benz, BMW, or Audi. This may limit $NIO's total addressable market. Benz, BMW and Audi each sold around 2 million vehicles per year and combine for around 10% of global car sales.
21(1).
If $NIO does not come up with cheaper models, this implies that $NIO is missing on 90% of the total car market.
If $NIO does not come up with cheaper models, this implies that $NIO is missing on 90% of the total car market.
22. Risks - Competition
Although $NIO has said that it is not a direct competitor of Tesla, EVs' competition is no doubt heating up. $NIO has enjoyed a first mover advantage in premium EVs in China.
Although $NIO has said that it is not a direct competitor of Tesla, EVs' competition is no doubt heating up. $NIO has enjoyed a first mover advantage in premium EVs in China.
22(1).
However, whether $NIO can maintain its advantage when competition is intense, still needs to be seen.
However, whether $NIO can maintain its advantage when competition is intense, still needs to be seen.
23. Risks - International Expansion
$NIO plans to expand internationally this year. There will be many challenges ahead. The following are some real questions: 1) whether $NIO as a premium Chinese EV brand can attract customers?
$NIO plans to expand internationally this year. There will be many challenges ahead. The following are some real questions: 1) whether $NIO as a premium Chinese EV brand can attract customers?
23(1).
Or will people have a bad perception of things ‘made in china’ 2) Can $NIO keep up its excellent service overseas while also keeping cost under control? (due to multiple times higher labor costs in western countries vs China)
Or will people have a bad perception of things ‘made in china’ 2) Can $NIO keep up its excellent service overseas while also keeping cost under control? (due to multiple times higher labor costs in western countries vs China)
24. Risks - Valuation
$NIO's valuation is by no means cheap. It is currently trading around around 42.8 billion. In comparison, Benz is trading around 81.3 billion EUR and BMW around 55.6 billion EUR.
$NIO's valuation is by no means cheap. It is currently trading around around 42.8 billion. In comparison, Benz is trading around 81.3 billion EUR and BMW around 55.6 billion EUR.
24(1).
This bags the question, how much potential/runway does $NIO still have?
This bags the question, how much potential/runway does $NIO still have?
25. Closing Remarks
$NIO has successfully established itself as the leader of premium Chinese EV makers. $NIO has established itself as the car maker that best service their customers in China. The amount of love and support shown by NIO owners to NIO is beyond impressive to me.
$NIO has successfully established itself as the leader of premium Chinese EV makers. $NIO has established itself as the car maker that best service their customers in China. The amount of love and support shown by NIO owners to NIO is beyond impressive to me.
25(1).
There is a famous saying in China about $NIO: “A lot of people bashes $NIO, however, almost all actual $NIO owners really love $NIO”.
There is a famous saying in China about $NIO: “A lot of people bashes $NIO, however, almost all actual $NIO owners really love $NIO”.
25(2).
Overall, I do believe $NIO has a bright future in China and is prime for exponential growth in the years ahead. $NIO's service and love from their community/owners are unmatched by any car maker. This will likely make them very competitive in the premium EV market.
Overall, I do believe $NIO has a bright future in China and is prime for exponential growth in the years ahead. $NIO's service and love from their community/owners are unmatched by any car maker. This will likely make them very competitive in the premium EV market.
25(3).
However, I do have two main concerns: 1) Costs; Will $NIO ever be able to make a profitable margin with all these premium services? 2) Will $NIO only be a successful company in China but not in the world?
However, I do have two main concerns: 1) Costs; Will $NIO ever be able to make a profitable margin with all these premium services? 2) Will $NIO only be a successful company in China but not in the world?
Thanks you all for reading this thread! I hope yo enjoyed it! Please retweet and share it if you like it! Please follow me for more future threads on exciting companies!
What do you all think about $NIO! All feedbacks are appreciated!
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What do you guys think about $NIO! All comments are appreciated!
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