As of October 5, 2020, Chinese electric vehicle (EV) maker NIO (NYSE: NIO) has provided more than one million free battery swaps to users, with a maximum of more than 500 battery swaps for a single vehicle, NIO said today.
NIO said, based on the cost of 180 yuan per time, the service has a cumulative savings of more than 100 million yuan for users.
Up to now, NIO has deployed 155 battery swap stations in China and built the battery swap networks along the G2 Beijing-Shanghai Expressway and G4 Beijing-Hong Kong-Macau Expressway.
According to China's latest new energy vehicle subsidy policy, vehicles over 300,000 RMB that support "battery swap" mode will continue to enjoy the new energy subsidy policy from 2020 to 2022, only NIO meets this condition in the domestic new energy market.
NIO-led battery swap model is about to get policy boosts in China
NIO Power battery swap milestones:
- December 16, 2017: The battery swap station debuted on NIO Day 2017.
- May 20, 2018: The first battery swap station - Shenzhen Nanshan Science Park battery swap station put into operation.
- November 15, 2018: 18 battery swap stations for the entire G4 Beijing-Hong Kong-Macau Expressway put into operation.
- December 15, 2018: 8 battery swap stations for the entire G2 Beijing-Shanghai Expressway were put into operation.
- April 15, 2019: NIO Power battery swap station won the 2019 Red Dot Award "Product Design Award".
- August 24, 2019: NIO offers free lifetime battery swap to first-time owners.
- May 20, 2020: The 131st battery swap station, the Foshan LeZhou Tianyoucheng battery swap station, is put into operation.
- May 25, 2020: Shanghai Auto Expo Park battery swap station completes NIO Power's 500,000th battery swap.
- October 5, 2020: NIO user's cumulative battery swap over 1 million times.
I really do not think people see what this means. When ALL other RV and gasoline powered automobile companies sell a car that is it pretty much as far as profit on that vehicle.
When NIO sells a car it continuously earns profit from that customer as each battery is charged.
This means NIOs profitability is exponential. As more cars are made and sold they all create profit. So what’s coming for NIO is huge debt reduction. Add to that enormous sales in a down market and additional production facilities the return on investment is enormous. Add to that an Apple like craving for everything NIO and you can see that $500 per share by 2030 is not only likely but it is probable.