Yes, you read the title correctly, if Nio continues to do what it is doing and goes global, it will be worth close to 2 trillion dollars within 15 years. We have made a blog post in 2019 stating that Nio will be the second most valuable car company in 2022, meaning that Nio will be having a market capitalization of at least 250 billion. For people that are shareholders, this means that the share price, with the current shares outstanding, will be around 170$ per share. This is if Toyota doesn’t do anything crazy and had a secret project that will massively take market share.
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What is Nio?
So for the people that do not know what Nio is and want a quick summary, this is Nio.
- A high end electric vehicle brand
- A Formula E (electric version of Formula 1) racing team. Click on the picture below to go to their team pages and see when their next races are
- A vehicle design company
- E-motor, energy storage system drive-train, power electronic unit and gearbox manufacturer
- An R&D (Research & Development) company focused on vehicle R&D, manufacturing operations, marketing, sales, and user services
- A vehicle manufacturing company
- A software company
- An entertainment company
- A real-estate company
- A battery-swap and charging infrastructure company
- A restaurant chain company
- A childcare company
- A coffee company
- A library
- A theatre
- A clothing company
- An accessories company
- A lifestyle choice.
So Nio is basically building a whole eco-system surrounding its brand. When they say that they are more than just a car brand, they mean it.
So in this blog post, we will be seeing how Nio, a fast-growing electric vehicle company that promotes blue skies (we like that at Luvioni), will be worth as much as Apple before the end of the year 2035.
For people that do not know about Nio, and are asking themselves: ”what in the world is this? what about Tesla? Yes, we do follow Tesla closely as well and do think it will be worth between 3-10 trillion $ within 15 years, but there are a lot of people talking about Tesla and it is pretty clear why Tesla is going to have a market cap/ value that big. This is one of the reasons China allowed Tesla to have its facilities there, having an electric car company worth this much, will be of course record-breaking and the Chinese auto manufacturers will follow, especially a company so well supported and different as Nio. We understand these numbers might seem crazy, but we have done an extensive research to try to explain this as simple as possible.
If you really want us to talk about this in detail about Tesla in a Tesla specific blog post, please let us know in the comments below.
Self-driving capabilities, battery services, charging services, charging network, subscriptions, Nio houses, Nio houses services etc are some of the basic things that make Nio great. So let’s look at the details to see how Nio will be worth as much as up to 2 trillion $.
It is no secret that Elon Musk will and deserves to be the first trillionaire in the world and will have a company that will be worth up to 10 trillion $. Apple, as much as they have had a lot of technological advancements and benefits, along with inspiring modern technology that could even be seen in electric vehicles have basically amassed this success by exploiting the addictiveness its technologies cause.
Yes, Apple has contributed a lot of good in the world and explains why they are worth around 2 trillion $ because companies that do good will be rewarded. However, companies like Tesla and Nio will far exceed the net good output of Apple in the world, automatically making both companies worth more than 2 trillion $. That is the most simple way to see it.
Tesla and Nio are not enemies. They are competing in the name of common goals.
You are probably asking yourself, but if Tesla can be worth up to 10 trillion, why not Nio?
Nio can achieve whatever they set out to achieve, however, we are only looking at a period of 15 years. We also look at what they are currently doing and what they plan to do. With this being said, Nio has its own unique capabilities, competitive advantage and position.
Reasons why Nio is worth less than Tesla:
- Nio is not yet fully vertically integrated.
- Tesla has 7 factories, Nio has one jointly owned factory and is planning on creating 1-2 more within 1 to two years. This takes time and money, however, the higher the stock price goes the more factories they will be able to afford as they will have more options as to how they can raise funds to do such activities. When and if Nio will have their fully self-owned factory is currently still unknown.
- Nio does not build solar panels
- Nio does own an Energy Storage System company called XPT, however, does not have large storage systems like Tesla. One could argue that Nio does have energy storage systems with their battery swap stations, but this is specifically for their vehicles.
- You can currently buy 5 different Tesla models and has announced an upcoming 3, new Roadster, Semi and Cybertruck. Nio currently has 4 different models that you can buy (EP9 sportscar, ES8, ES6 and EC6) and has announced an upcoming model called the ET7. So this is kind of a positive for such a young company, Nio is only one car behind Tesla when looking at what is currently on the market.
- Tesla started earlier. Tesla started its operations in 2003 and Nio started its operations in 2014. Even with Tesla having this 11-year headstart, Nio is quickly catching up, but if it is going to surpass Tesla is highly unlikely. Only time will tell.
- Tesla has a decade-old growing fanbase and Elon Musk is the face of the company. Nio is also growing a loyal fanbase, however, the CEO Bin Li, even though he is popular in China, has up until now less fame globally. With this said, His global fame is growing thanks to the ever-growing popularity of the $NIO stock.
This is a shortlist, however, these have a big impact that currently makes Tesla worth more than Nio.
Current/ latest NIO achievements/status
So that we do not repeat ourselves on the website we will only be stating the latest/ current Nio status/achievements/developments. We have made other Nio posts in our electric vehicle blog post category so check them out here after you finished reading this blog post to see Nio’s progress:
- Nio, the second most valuable car company 2022
- Critical Nio Stakeholders analysis in 2020
- Interesting Nio Sustainability Score in 2020
- How to buy a sexy NIO car in 2021
Nio also gets support from the government as Nio helps provide the heavily needed EV infrastructure China needs. China currently has more than 285,000+ fast chargers. As you can see, China is already fully filled with chargers and they plan to add more. for you who don’t know this, China is HUGE. China is bigger than the US, bigger than Canada, bigger than Greenland, bigger than Western and Northern Europe combined and bigger than Australia.
If this wasn’t already good enough, Nio has conducted more than 1,490,137 battery swaps up to the date of their Nio day in January AND are planning to have 500 battery swap stations before the end of 2021. This means they will have almost 3x (3 times) more battery swap stations than they have had their whole existence, all in one year!
With this mass expansions, I think we will be seeing an expansion in their sales numbers as well, which is also the reason for our high valuation for Nio. You can see these as costs, but these are basically an investment for their subscription service. It is like Netflix that invests in popular movies, shows and servers in exchange for good customer experience and higher subscription numbers. Battery swap is the reason why Nio might be one of the fastest electric vehicle companies to hit a net profit in a very short time, if Nio keeps doing what they are doing well, which is customer service and selling cars people like, Nio can see net profit by the end of 2021. This fast net profit which in turn also increase their valuation of course, because once you hit net profit in the growing phase, it’s an exponential growth from there.
People at Luvioni love nature and mountains, so as a fun fact, Nio even built a network where you can drive your electric car from Chengdu to Mountain Everest base camp. that is approximately a 2,900KM route that we would like to try and we just wanted to mention this. For you Americans, it’s like driving from Nebraska to Miami Florida.
Nio has also pledged to help China add 30,000+ DC Chargers all around the country. This will mean that Nio will have more than double the amount of charging stations Tesla has, but kee[ in mind that Tesla is also growing at a rapid pace.
So what else does Nio has to offer?
Nio surprised the whole world with AQUILA.
NIO has built up the NAD full-stack autonomous driving capability including perception algorithm, localization, control strategy and platform software. NIO Aquila Super Sensing features 33 high-performance sensing units, including 11 8-megapixel high-resolution cameras, 1 ultralong-range high-resolution LiDAR, 5 millimetre-wave radars, 12 ultrasonic sensors, 2 high-precision positioning units, V2X and ADMS. Aquila can generate 8-gigabyte data per second.
This is HUGE for Nio and is one of its first step in becoming more independent and technologically more advanced. Although we consider it risky here at Luvioni for people to not listen to Elon Musk, the technology Nio presented seems to take the best of both worlds to create the best and safest autonomous vehicle.
Aside from AQUILA, Nio also presented ADAM.
NIO Adam features 4 NVIDIA DRIVE Orin SoCs with a total computing power of 1,016 TOPS. This will help AQUILA compute all the data it collects with all of its 33 high-performance sensings units to ensure that the car does what it needs to do exactly when it needs to do it with the utmost minimum delay as possible to ensure driver and passengers safety.
Aside from AQUILA, Nio also presented ADAM.
NIO Adam features 4 NVIDIA DRIVE Orin SoCs with a total computing power of 1,016 TOPS. This will help AQUILA compute all the data it collects with all of its 33 high-performance sensings units to ensure that the car does what it needs to do exactly when it needs to do it with the utmost minimum delay as possible to ensure driver and passengers safety.
New Nio ranges
Nio will be having new ranges, ranging from 850km to 1,000+km from 2022 onwards. This is huge for Nio as it basically matching Tesla (The electric company with the furthest range) and saying that it will surpass Tesla.
This is an old SEC filing of NIO when they first ook Nio public in 2020. Fast forward to 2021, their perceived value arguably exceeds that of the top dog Tesla Model X with a combination of their pristine service and quality. That is saying a lot seeing that Luvioni is a big fan of the AUDI E-tron SUV, Mercedes-Benz EQC and the great Tesla Model X. In range alone, Nio beats Tesla, that’s without mentioning the range, attention to detail quality and extensive attention to customer service and customer satisfaction.
In 2021 Nio is gaining and maintaining the high-end brand recognition of being equal to or above brands like Jaguar, AUDI, Mercedes-Benz and Porsche.
This is also the latest organizational structure Nio has disclosed to the general public, with this you can get a better idea of the sheer size of Nio (keep in mind this is still a young company. The most notable one is the XPT which we mentioned above. Click on the pictures below to follow the official XPT website, which is fully officially owned by Nio.
Huge social media following
People that live outside of Chine might not know how big of a social media following this young company have. Nio has close to 1 million followers on popular Chinese social media platform Weibo. Nio doest even promote this on its more international platforms like LinkedIn, Twitter, Facebook, YouTube and Instagram. If we count all the known Nio social media accounts, and that it without counting the number of users on their own app and WeChat, Nio has around 1.5 million followers across all countable platforms. If you want to follow Nio on the Weibo platform please click here or on the picture below.
Nio Life
Nio doesn’t only focus on making beautiful high-quality electric vehicles with amazing service attached to it, Nio is also part of Nio life. when looking at their financial statements, it looks like the Nio life has contributed at least more than 35 million euros per year, that is more than a 100% increase in 2020 in comparison to 2019.
Nio life houses and food
Nio currently has 219 Nio houses and service locations throughout China and growing fast. Not only that, but Nio also has its own FoodLab by NIO Life, which ensures that its users get the highest quality food while being delicious and healthy. If you want to see every specific location of the Nio houses/service centers, please click on the picture below or click here.
Nio Vehicles
Nio currently has 5 vehicles you can purchase, the EP9 being the hardest one to obtain as there were only 15 models ever produced and they are all sold out.
Thank you for reading our blog post and we hope you enjoyed it. We will most likely be updating this blog post with some added information and as soon as we get our hands on the 2020 Nio earnings report so we can make an accurate and relevant calculation. If you cannot easily find our other Nio post, please just click on the three lines on the top right corner and search for the term NIO.
So stay tuned and subscribe or keep visiting our website for the updated version of this blog post!
Excellent analysis. Nio is also an insurance company.