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NIO Bolsters Its EV Game With 3 Models in 4 European Countries
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In a breakthrough, NIO Inc. (NIO - Free Report) made headway into four more European countries after entering Norway in 2021. At a recent event in Berlin, NIO announced extending its services to Germany, Netherlands, Denmark and Sweden.
The selling strategy is different from the Norwegian market, wherein the automaker sells its electric vehicles (EVs) directly. Instead, in the new markets, it has introduced a subscription-based model through which customers can lease vehicles and rent NIO’s three models, namely two sedans and one SUV. NIO has stated that since tax policies are not lucrative, it has decided on the new strategy.
The subscription period can be as short as a month and the longest being 60 months. Additionally, customers will get access to other services by NIO, as well as use NIO Houses. The Berlin NIO House is expected to open soon and new facilities will eventually open in other markets.
The subscription plans have been designed holistically to allow users to enjoy a hassle-free experience. It comprises comprehensive insurance, maintenance, winter tires, a courtesy car, battery swapping and the flexibility to upgrade battery services.
Beside getting the vehicles charged, customers have the provision for swapping their dead batteries for fully charged ones at NIO's swapping stations. In September-end, the company opened its first battery swap station in Germany’s Zusmarshausen on a motorway between Munich and Stuttgart.
Also, the company opened its first European plant to manufacture swapping stations in Hungary last month. NIO has laid out an ambitious plan to install at least 120 battery-swapping stations in Europe by the end of 2023. By 2025, it aims to build 1,000 swapping stations overseas, most of which will be in Europe.
NIO will launch ET7, EL7 and ET5 in the new countries. Deliveries of the flagship ET7 are expected to begin in Germany and the Netherlands on Oct 16, followed by Sweden and Denmark on Nov 15. At the end of January 2023, the EL7 will be available in all four markets. The junior model, ET5, is slated to debut at the end of March 2023.
All three vehicles cater to premium buyers in the wealthiest countries in Europe. The automaker intends to bring more affordable models as it gradually expands in the continent. It announced that it would launch a mass-market brand in China in 2024, and in Europe a few months later. NIO plans to introduce its ALPS brand in Europe once it is unveiled in 2024.
Recently, NIO invested in Greenwing Resources, the Australia-based lithium company. The China-based EV-maker has agreed to pay $12,000,000 to Greenwing to subscribe for the latter’s 21,818,182 shares at a deemed issue price of 55 cents per share (Placement). The move by NIO seems to be a preparatory step to secure battery raw material supplies for the long run.
NIO eyes the global market to strengthen its electric opportunities. At the Berlin event, the company announced that it will expand its footprint to 25 countries and regions by 2025.
Several China-based companies are expanding their reach overseas. SAIC Motor, China's largest automaker, delivered an EV model to the Europe market in July. Byd Co. (BYDDY - Free Report) rolled out three models in Europe in September. Per media reports, the largest car rental company in Germany, Sixt, announced plans to purchase 100,000 EVs from Byd within six years.
Shares of NIO have lost 61.4% over the past year compared with its industry’s 37.2% decline.
Cummins has an expected earnings growth rate of 17.9% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 0.23% in the past 30 days.
Cummins’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the other two. CMI posted a trailing four-quarter earnings surprise of 1.49%, on average. The CMI stock has declined 6.2% in the past year.
Dorman has an expected earnings growth rate of 10.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been unchanged over the past 30 days.
Dorman’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once. DORM reported a trailing four-quarter earnings surprise of 0.85%, on average. The DORM stock has declined 11.4% in the past year.
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NIO Bolsters Its EV Game With 3 Models in 4 European Countries
In a breakthrough, NIO Inc. (NIO - Free Report) made headway into four more European countries after entering Norway in 2021. At a recent event in Berlin, NIO announced extending its services to Germany, Netherlands, Denmark and Sweden.
The selling strategy is different from the Norwegian market, wherein the automaker sells its electric vehicles (EVs) directly. Instead, in the new markets, it has introduced a subscription-based model through which customers can lease vehicles and rent NIO’s three models, namely two sedans and one SUV. NIO has stated that since tax policies are not lucrative, it has decided on the new strategy.
The subscription period can be as short as a month and the longest being 60 months. Additionally, customers will get access to other services by NIO, as well as use NIO Houses. The Berlin NIO House is expected to open soon and new facilities will eventually open in other markets.
The subscription plans have been designed holistically to allow users to enjoy a hassle-free experience. It comprises comprehensive insurance, maintenance, winter tires, a courtesy car, battery swapping and the flexibility to upgrade battery services.
Beside getting the vehicles charged, customers have the provision for swapping their dead batteries for fully charged ones at NIO's swapping stations. In September-end, the company opened its first battery swap station in Germany’s Zusmarshausen on a motorway between Munich and Stuttgart.
Also, the company opened its first European plant to manufacture swapping stations in Hungary last month. NIO has laid out an ambitious plan to install at least 120 battery-swapping stations in Europe by the end of 2023. By 2025, it aims to build 1,000 swapping stations overseas, most of which will be in Europe.
NIO will launch ET7, EL7 and ET5 in the new countries. Deliveries of the flagship ET7 are expected to begin in Germany and the Netherlands on Oct 16, followed by Sweden and Denmark on Nov 15. At the end of January 2023, the EL7 will be available in all four markets. The junior model, ET5, is slated to debut at the end of March 2023.
All three vehicles cater to premium buyers in the wealthiest countries in Europe. The automaker intends to bring more affordable models as it gradually expands in the continent. It announced that it would launch a mass-market brand in China in 2024, and in Europe a few months later. NIO plans to introduce its ALPS brand in Europe once it is unveiled in 2024.
Recently, NIO invested in Greenwing Resources, the Australia-based lithium company. The China-based EV-maker has agreed to pay $12,000,000 to Greenwing to subscribe for the latter’s 21,818,182 shares at a deemed issue price of 55 cents per share (Placement). The move by NIO seems to be a preparatory step to secure battery raw material supplies for the long run.
NIO eyes the global market to strengthen its electric opportunities. At the Berlin event, the company announced that it will expand its footprint to 25 countries and regions by 2025.
Several China-based companies are expanding their reach overseas. SAIC Motor, China's largest automaker, delivered an EV model to the Europe market in July. Byd Co. (BYDDY - Free Report) rolled out three models in Europe in September. Per media reports, the largest car rental company in Germany, Sixt, announced plans to purchase 100,000 EVs from Byd within six years.
Shares of NIO have lost 61.4% over the past year compared with its industry’s 37.2% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
NIO currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Cummins Inc. (CMI - Free Report) and Dorman Products (DORM - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Cummins has an expected earnings growth rate of 17.9% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 0.23% in the past 30 days.
Cummins’ earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the other two. CMI posted a trailing four-quarter earnings surprise of 1.49%, on average. The CMI stock has declined 6.2% in the past year.
Dorman has an expected earnings growth rate of 10.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been unchanged over the past 30 days.
Dorman’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once. DORM reported a trailing four-quarter earnings surprise of 0.85%, on average. The DORM stock has declined 11.4% in the past year.