Nio 5 new product offerings in 1H 2023 will be golden & life-threatening to numerous competitors with barely a competitive premium luxury product in sight.
Editor’s note: This is a guest post from Rafi Khan, an Nio investor, and does not represent the views of CnEVPost.
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Good summary of Earnings Call here from CnEVPost.
F1 & F2 can provide 600,000 production capacity (150,000 each annually from one shift).
Such capacity is perfectly synchronized with the new XPT NeoPark EDS capacity of 1.3 million units.
Each Nio dual-motor EV needs 2 motors so the NeoPark EDS facility can handle 650,000 Nio EVs.
Nio will operate an additional new NeoPark EDS production line this month.
Record 12 new Nio Houses opened just last month clearly indicates Nio’s satisfaction with that core marketing/branding strategy.
Now Nio has 399 Nio Houses & Nio Spaces.
For all hoopla from competitors, Nio is the only EV viable competitor to ICE premium luxury sedans in China market (price over RMB 300,000).
ICE BBA occupies the top 6 positions with Nio ET7 & ET5 already in 8th & 10th spots. Not a BBA EV in sight for the Top 10 spot.
Seems Nio’s only supply chain constraint in the near term is SiC chips.
China Covid policy & lockdowns are not in Nio control nor their impact on the Nio supply chain — hence the need for patience.
Lithium carbonate prices stand at RMB 592,500 per ton up from RMB 200,000 a year ago.
Which negatively impacts Nio GM by 2% for every RMB 100,000 rise.
So you don’t need to be a rocket scientist to figure out why VGM fell from 20% to 16% over the past year.
If William Li is telling even a half-truth that EV product life cycle is 3 years — then God help 2017 Model 3 & technology crippled BBA EV offerings.
TSLA’s silence on competitive premium luxury sedans must be Beethoven Music to Nio ears because expect nothing from BBA in at least 2023, leaving China / Europe as killing fields for ET7, ES7, ET5 & 5 new 1H.
2023 offerings
German Chancellor high powered delegation visit to China & Europe outrage over Biden Inflation Reduction Act sticking a dagger in European industry also helps Nio European aspirations.
Nio 5 new product offerings in 1H 2023 will be golden & life-threatening to numerous competitors with barely a competitive premium luxury product in sight.
We can only hope the plethora of production/ delivery disappointments end concurrently with the close of 2022 vision & patience are required.
Not Financial Analyst, Nor Auto analyst JMHO DYODD
