GLJ Research CEO and Analyst Gordon Johnson released on Thursday a new research note on NIO saying that the company is “the worst positioned when looking at domestic growth”.
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Johnson said the company “has promised a number of customers unlimited battery swap for a life-time, without a crucial fee on the electricity” due to the “limited demand for its cars globally”.
The analyst mentioned that the strategy is “nuts” and shows that NIO “will likely see deep losses every year for a long time.”
On Wednesday, NIO reported 7,024 vehicles delivered in May 2022 showing an increase year-over-year and also from the previous month, when delivered 5,074 units. On NIO App, William Li answered to customers and enthusiasts saying “Thank you all! We will continue to work hard in June”.
According to sources related with the matter, the EV maker NIO just completed the construction of the modern assembly line at its second factory located at Xinqiao, Hefei, Anhui province. In less than 7 months, NIO went from breaking ground to the completion of the main project and the installation of process equipment.