NIO Commentator
OptionsThat's right. If NIO succeeds, it will definitely be a success of business model innovation, not relying on traditional car manufacturing and selling at high prices. This should be the consensus of everyone who has persisted until now. NIO's model is like Amazon back in the day: building warehouses, establishing logistics, using low-priced core products to dominate the market, and making stable profits from the largest marginal industries. NIO sells cars using BaSS for differentiated competition to outmaneuver rivals, then makes money through battery swapping, peak shaving, battery life extension, energy storage, recycling, and selling services. The model design is grand and beautiful. The only problem is, currently, besides the few major platform-type internet giants, no other private enterprise in our country can get involved in such large-scale basic industries. It depends on whether NIO can maintain its innovation and growth speed; both are indispensable. Like several predecessors, it must grow rapidly to a point where it's difficult to uproot, only then can it be considered a secured success. The era, opportunities, and luck—this is a very, very thin tightrope.
You're right, the pure car business is indeed not a good business, because it's a one-time transaction, the business ends there, with low profit margins and heavy assets.
I bought Nio for its future potential. As Nio's existing vehicle fleet grows larger and larger, the continuous rental income from its battery-as-a-service (BaaS) will keep increasing and amplifying, stable and with high profit margins. As smart driving occupies a larger and larger place in consumers' minds, Nio's persistent subscription model for smart driving gives its future smart driving software subscription revenue room for imagination. It is continuously improving its ability to earn money throughout the entire product lifecycle, which is what makes it more attractive than other automakers.
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