Nio Says No EV Price Hikes For Now — What Makes It Different From Tesla, Xpeng And BYD?

Nio Inc NIO does not plan to raise prices of its electric vehicles for now, CnEVpost reported on Monday, citing a local media site that quoted the company’s co-founder and president, Qin Lihong.

What Happened: Shanghai-based Nio’s rivals including Tesla Inc TSLA, Xpeng Inc XPEV, and BYD Co BYDDY raised prices last week due to inflationary pressure and amid a sharp rise in raw material costs, including nickel and lithium.

Lihong did not provide further details. An email sent to the company seeking comment did not elicit a response at press time.

Tesla was among the first electric vehicle makers to hike prices last week in the U.S. and China. 

See Also: Tesla Hikes Prices For Entry-Level Model Y SUV In China

Why It Matters: Unlike key rivals who are developing their own charging networks, Nio relies on the battery swapping model. 

Nio also offers a separate battery-as-a-service subscription model to customers who buy its cars.

See Also: Warren Buffett-Backed Chinese EV Maker Follows Tesla In Hiking Prices As Material Costs Pinch

The subscription model brings down the upfront cost of its EVs, enables faster charging, and addresses the issue of insufficient charging stations.

That also reportedly helps Nio absorb the rising cost of batteries comparatively better. The EV maker could, however, hike prices for the swapping and charging services. 

Price Action: Nio stock closed 10.8% higher at $20.8 a share on Friday.

Photo courtesy: Nio Inc