Chinese electric vehicle (EV) maker NIO (NYSE:NIO) notified Reuters that it will not be selling its vehicles in the markets of Germany, Denmark, Sweden, and the Netherlands this year. Rather, the ET7, EL7, and ET5 models will be available for lease through a subscription-based model.
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EVs with 75 gigawatt-hour batteries will be available for €1,199-€1,295 ($1,171-$1,264 as per Reuters) a month on average. Moreover, users can also charge the cars at a battery swapping station for quick service rather than charging them at home.
This is a brilliant move, as it will offer flexibility to users to lease and try out the cars and make the transition to a new technology smooth. This flexibility will drive customer retention as well. Notably, NIO’s battery-for-hire strategy has gained popularity, as the flexibility to rent the most expensive part of an EV is a big money-saver for many customers.
Is NIO Stock a Buy or a Sell?
Wall Street is bullish on NIO stock, with a Strong Buy consensus rating based on seven unanimous Buys. The average price target for NIO stock is $32.97, which indicates upside potential of almost 140% from the current price.
