Sep 24, 2020
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How Does Tesla’s Chinese Rival Nio Make Money?

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NEW YORK NY – SEPTEMBER 12: A vehicle from electric car maker NIO sits outside of the New York. [+] GETTY IMAGES Nio a Chinese automobile company that designs and manufactures premium electric vehicles has seen its stock almost double year-to-date. Nio s Revenues have grown from around $720 million in 2018 to about $1


12 billion in 2019 as its vehicle deliveries grew from around 11 300 units to about 20 600 units. Sales are expected to grow by 65% driven by strong sales of the corporate s ES6 5-seater electric SUV and the launch of the smaller EC6 SUV which is predicted to commence deliveries later this year


In our interactive dashboard Nio Revenues: How Does Nio Make Money? we discuss Nio s business model followed by sections that review past performance and 2020 and 2021 expectations for the corporate s revenue drivers and competitive comparisons with Tesla. The key elements of this analysis are discussed below. Nio reported about $1


12 billion in Total Revenues for full-year 2019. This includes 2 operating segments: Automotive: $1. 06 billion in 2019 (94% of Total Revenues). Sells the corporate s electric vehicles which currently include the Nio ES 8 that’s a premium SUV available in six or seven-seater configurations and Nio ES 6 a five-seater SUV


Other: $66 million in 2019 (6% of Total Revenues). This segment includes revenues from the corporate s service packages for its EVs and its energy solutions that include charging and battery swapping. Nio s Automotive Segment Sales from the Automotive segment have increased by 50% from $706 million in 2018 the year the corporate launched its vehicles to $1


06 billion in 2019. This was primarily driven by higher deliveries which rose from 11. 3k in 2018 to about 20. 6k in 2019. However the typical price declined from $62k to about $52k driven by a higher mixture of ES6 SUVs which have a low cost point when compared with the flagship ES8 SUV


We expect revenue to grow to $1. 78 billion in 2020 as deliveries grow by over 70% to 35k units driven by higher uptake of the ES6 and the launch of the more compact EC6 with the revenue growing further to $2. 75 billion in 2021. The Chinese automotive market has recovered well following the Covid-19 related disruption earlier this year and Nio indicated that it saw a monthly delivery record of three 436 vehicles in May 2020


Additional details about how key drivers of Nio s Automotive Revenues have changed through the years and are more likely to trend going forward are available in our interactive dashboard. Nio s Other Segment Other sales have grown from $14. 4 million in 2018 to $66 million in 2019 and we expect the metric to grow to $105 million in 2020 and $152 million in 2021 driven by a higher base of vehicles on the road which should boost demand for service packages and energy sales


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No Putting A Person Of Color On Your Panel Doesn t Accomplish Diversity Is Nio stock a higher investment that EV bellwether Tesla? Discover more in our dashboard analysis How Does Nio Compare With Tesla? See all Trefis Price Estimates and Download Trefis Data here What s behind Trefis? See How It s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product R&D and Marketing Teams

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