NIO - Nio partners with SAIC Motor on EV charging
2024-05-30 14:47:38 ET
Nio Inc (NYSE: NIO) is up 10% at writing after announcing a new partnership with IM Motors to “interconnect their charging networks”.
is quickly growing its battery swap alliance
Note that IM Motors is the electric vehicles unit of the Chinese state-owned SAIC Motor Corp.
Its users will now be able to use the mobile app or onboard charging map to access charging stations. The IM software will bring information on location, status, price, and usage details to them in real-time, as per CnEV Post.
Customers of the EV joint venture will be allowed to scan QR codes, charge, and make payments via the platform, the report added.
Nio’s charging network is one of the largest in China with 3,863 stations and 22,551 piles in total as of May 30 th . More than 80% of its charging piles currently serve non-Nio electric vehicles.
Earlier this month, GAC secured a similar partnership with as well. Others that are a part of its battery swap alliance include FAW, Cherry, Changan, and Geely. Nio stock is still down more than 35% versus the start of 2024.
Is Nio stock worth owning in 2024?
Earlier this week, Bank of America analyst Ming Hsun Lee reiterated his “neutral” stance on Nio stock and lowered his price objective to $5.90.
Lee acknowledged the promising sales trends and now expects the EV company to sell 193,000 units in 2024 – up some 6.0% from his previous forecast.
The analyst does, however, sees an increase in operating expenses of this year as well. He raised his estimate for the company’s OPEX-to-revenue ratio from 34.8% to 41.6% in a recent research note.
Onvo – a smart electric vehicle brand Nio launched in May will push sales and marketing costs up significantly in the back half of 2024. Plus, the R&D (research and development) costs are likely to remain at a solid ¥13.7 billion this year, Ming Hsun Lee added.
is expected to launch a new brand codenamed “Firefly” in Europe in mid-2025. The firm is scheduled to report its financial results for the first quarter on June 6 th . Consensus is for it to lose 31 cents a share versus 42 cents per share a year ago. Nio stock does not currently pay a dividend.
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