Nio Lifts on Expected Record Deliveries Amid BaaS Discounts

On Thursday, Nio ADR’s shares soared on predictions of all-time high deliveries in May after battery-as-a-service (BaaS) discounts boosted sales.

The Shanghai-based electric vehicle (EV) manufacturer’s stock surged 9.33% to $5.39 per share on May 30. Despite a 1.30% dip after hours, analysts are optimistic, projecting a 0.82% increase to $5.43 apiece in the following market session.

Nio told investors it expects to ship over 20,000 units in May after April deliveries rose 134.60% year-over-year to 15,620. Furthermore, the automaker expressed confidence in beating the current monthly sales record of 20,462 set in July last year.

Between May 01 to 26, the carmaker estimates new insurance registrations of 15,400, nearing April’s full-month deliveries. According to industry specialists, Chinese EV makers often have a sharp spike in sales in the last few days of the month.

In addition, Nio CEO William Li reiterated that the company would add a 150-kWh battery pack to its rental program on June 01. Following the standard 70/75-kWh and long-range 100-kWh variants, the ultra-long-range option can power an EV for up to 1,000.00 kilometers.

Moreover, BaaS subscribers can convert to the new battery pack without buying a new Nio vehicle. The upgrade will cost an additional RMB 150.00 ($21.00) per day for standard pack users and 100.00 ($14.00) for LR.

BaaS Revamp Cuts the Ownership Costs of Nio EVs

In March, Nio drastically restructured its BaaS battery rental option as it sought to navigate China’s brutal EV price war. Introduced in August 2020, opting for the service automatically reduces the purchase price of any model by RMB 70,000.00 ($9,850.00).

In addition, lessees must pay a monthly fee of RMB 980.00 ($140.00) for the standard battery pack and RMB 1,680.00 ($240.00) for the long-range version. However, renters had no way to own the component, deterring many from enrolling in the program.

Following the BaaS restructuring, the fees were cut by 25.10% to RMB 728.00 for standard batteries and 32.86% to RMB 1,128.00 for LR. Lastly, rental subscribers can now buy out the battery at a discount based on the number of payments made.

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