Will Nio's 'Power Plan 2025' Stimulate Chinese EV Nameplate's Sales?

Nio, Inc. NIO held its Nio Power Day event Friday and unveiled its "Nio Power 2025" plan.

The Nio Analyst: BofA Securities analyst Ming Hsun Lee maintained a Buy rating and $60 price target for Nio.

The Nio Thesis: The Nio Power Day announcements ease users' range anxiety and could in turn stimulate EV sales, Hsun Lee said.

Nio Power is a mobile, internet-based power solution with extensive networks for battery charging and battery swap facilities, the analyst said.

It consists of the Nio Power Charger, Nio Power Swap, Power Mobile and Nio Power Home, he said. 

"Enhanced by Power Cloud, Nio Power offers a power service system with chargeable, swappable and upgradable batteries to provide users with power services catering to all scenarios," Hsun Lee said. 

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Additionally, the company announced it would share its public charging infrastructure, including charging piles and battery swap stations, as well as battery-as-a-service/fast battery swap technology, with other auto companies, the analyst said. 

Nio also announced a concept called "electricity district houses," which refers to residences within a 3-kilometer radius from a battery swap station, he said.

The company expects to increase the percentage of Nio users in a swap station district from 29% to 90% by 2025. 

Between 2022 and 2025, the company expects to increase battery swap stations by 600 units per year, the analyst noted. By 2025, the company expects battery swap stations to exceed 4,000, with 1,000 of those located outside China, the analyst said.

Having already shipped battery swap and fast charging stations to Norway, the company plans to have battery swap stations in five cities in that country in 2022, according to BofA. 

NIO Price Action: Nio shares were down 1.65% at $44.78 at last check Monday. 

Photo: courtesy of Nio.