Nio Inc. (NYSE: NIO) has launched five additional battery swap stations in China, according to cnEVpost, as the Chinese electric car manufacturer starts on an aggressive expansion strategy.
According to the report, Nio now has a total of 282 battery swap stations in China.
The company also has access to more than 380,000 third-party charging piles across China, according to the report, which includes 194 supercharging stations, 371 destination charging stations, and 194 supercharging stations.
See also: What Investors Should Know About Tesla’s Battery Charging vs. Nio’s Battery Swapping Why It Matters: Nio, a Tesla Inc. (NASDAQ: TSLA) competitor, pioneered the concept of battery-as-a-service, which allows users to rent a battery rather than buy one, lowering the cost of EV ownership.
Nio’s second-generation battery swap station, which was launched in January this year, has a daily capacity of up to 312 exchanges and can hold 13 batteries. When compared to charging, battery shifting has the advantage of saving time.
By the end of the year, Nio hopes to have 500 battery swap stations open around the country. The installation of battery swap infrastructure has received backing from a number of government ministries and Chinese cities.
However, in a note published in May, Ark Invest analyst Sam Korus stated that government backing in the form of subsidies will hinder Nio’s worldwide goals in the long run. According to the expert, the economics of battery swapping will lead to design limits and shorter battery lifespan.
Price Changes: Nio shares fell over 0.9 percent to $45.07 in Friday’s trading session.
In a recent survey, Nio was named the most promising brand for growth in China.
Nio 2021 Benzinga.com courtesy photo. Benzinga does not offer financial advice. All intellectual property rights are reserved.
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