Nio has been at the brink before. Can the EV maker rally again?


Share post:

Nio now faces “a dilemma between its brand positioning and profitability,” CMB International Global Markets Ltd. analysts wrote in a June note, which simultaneously downgraded the automaker to hold from buy. 

While it tries to cut costs, Nio is also facing the seemingly at-odds task of intensively pushing updated versions of its models into the market. Within the space of a month, Nio unveiled a revamped model of its top-selling ES6 sport utility vehicle and a new wagon variant of its ET5 electric sedan.

Extra versions may spur sales, but China’s new-energy vehicle market has now transitioned from over-crowed to somewhat more concentrated, with much bigger players like BYD Co. and Tesla consolidating their power.

One pillar of support for Nio in its infancy, and a large factor in helping the company survive the last time it found itself in dire straits, is its loyal fan base. Since its early days, Nio has cultivated an aura of clubbiness around its cars, building Nio Houses for customers and holding gala dinners and events where they can mingle and socialize.

But as its customer base has expanded, that feeling of belonging has diluted. Some customers have been a little miffed by Nio’s price cuts, believing they cheapen the brand.

Investors — and the people buying Nio’s cars — must hope the company has learned from its past travails. Yet Nio still has ambitious plans, like building 1,000 battery swap stations this year in China alone.

At an estimated cost of around $140,000 each, even with cash and cash equivalents of $5.5 billion as of March 31, that’s quickly looking like another outlay Nio can ill afford.

Source link

Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

Recent posts

Related articles

The Safest SUVs for 2023 and 2024

Honda's subcompact HR-V may lack much in the way of driving enthusiasm, but it is mighty safe....

VW Turns Up the Wick on ID.7 EV with 551-HP Performance Concept

This new concept car from Volkswagen shows what a sportier version of the ID.7 electric sedan could...

2024 Mercedes-Benz Sprinter

Overview Mercedes-Benz continues to trim back the Sprinter’s available build combinations, but the 29-year-old full-size van continues...

1985 Fiat Panda 4×4, Europe's Baby Off-Roader, up for Auction on Bring a Trailer

The boxily pragmatic little Fiat Panda arguably reflects the true modern Italy more than a Fiat 500...

Jann Mardenborough on Finding Secret Racing Lines in 'Gran Turismo'

Warning: Spoilers ahead for the Gran Turismo movie.We expect a certain loose application of facts in moviemaking....

1972 Buick Riviera on Bring a Trailer Is One Bodacious Boattail

Far more charismatic than anything in Buick's current all-SUV lineup, this swaggering coupe hails from an age...

Best New Car Lease Deals for September 2023: Plug-In Hybrids

Picture Rodney Dangerfield in a plug-in hybrid (had the comic lived long enough to buy one), because...

1997 AM General Hummer: Full Metal Racket

From the June 1997 issue of Car and Driver.Don't look now, but the wood-and-leather-lined halls of luxury...