How Do They Make Money?

Vehicle Sales (88.6%)

• Core source of revenue is vehicle sales of premium electric vehicles of various models including SUV and Sedans.

• Vehicles are priced at a premium to reflect their premium features and technology.

• As at time of writing, NIO’s sub brand ONVO will begin deliveries on September 28th 2024 of their L60 electric SUV which aims to compete with Tesla's Model Y and target the mass market at more competitive prices.

Provision of Power Solutions (3%)

• Subscription based Battery-as-a-Service (BAAS) model which allows NIO customers to lease or subscribe to the vehicle battery rather than purchasing it outright with the vehicle.

• This provides NIO with a steady recurring revenue stream and incentivises customers to subscribe in order to lower their upfront vehicle purchase cost and simplify battery management/maintenance.

• NIO operates a network of charging and battery swap stations mostly across China, which allows it to generate revenue from charging fees and through partnerships with other companies involved in the provision of charging piles and other power solution services.

Parts, Accessories and After Sales (4.2%)

• This includes repairs, car parts and accessories, maintenance, warranty services etc..

Others (4.2%)

• Revenue from sales of used cars, financing services, merchandise and other products/services.