Chinese electric vehicle maker Nio Inc’s NIO founders are worried about the stock’s recent drop.
What Happened: Nio co-founder and president Lihong Qin said at a media briefing that both CEO William Li and him are worried as some Nio vehicle owners have also bought "a lot" of Nio stock, cnEVpost reported, citing the executive. Qin particularly noted the interest milenials in Europe have been showing, with Nio stock ranking in the top three in popularity with the demographic.
The Nio co-founder noted that the company nevertheless remains focused on prioritizing research and development over profitability at such early stages. "This is the value of NIO. Capital has its choices, and some pursue short-term interests, but for the really big investors, many of them are not interested in NIO's quarterly earnings reports," Qin said.
On Nio delivery numbers falling short of rivals Xpeng Inc. XPEV and Li Auto Inc. LI, the executive said the company remains focused on grabbing a higher share in the premium segment and not on outdoing the number of these two companies. Qin reportedly highlighted that Nio would launch a separate mass-market brand at the right time to take aim at the numbers of these companies.
On Battery-Swap In Norway: The executive said 95% of Nio’s customers in Norway preferred the company’s battery as a service (BaaS) rental service as it lowers the cost significantly. Nio’s battery swap is only free for those who choose the subscription.
Qin said in future rollouts both the battery swap and BaaS will be “strongly associated" in China.
Why It Matters: Nio shares plummeted on Friday after ride-hailing giant DiDi Global Inc DIDI announced plans to withdraw from the New York Stock Exchage under pressure from regulators in China.
See Also: Why Nio Shares Are Falling Today
Nio shares have been under pressure as the stock has fallen about 25.5% in the past one month and is down 40% year-to-date.
Price Action: Nio shares closed 11.2% lower at $32.15 a share on Friday.
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