NIO achieves best-ever monthly performance in August

Shanghai (Gasgoo)- NIO announced on Sept. 3 that its deliveries remarkably rose 104.1% year on year to 3,965 units in August, hitting a record high level in terms of the retail sales for a single month.

(Photo source: NIO)

As of August 2020, NIO's cumulative deliveries amounted to 53,580 units, of which 21,667 units were delivered in 2020.

“In August, we achieved our best-ever monthly performance on both deliveries and order growth,” said William Bin Li, founder, chairman, and CEO of NIO.

He added that NIO monthly capacity will reach 5,000 units in September to support future deliveries.

The startup announced earlier this week the completion of the offering of 101,775,000 American depositary shares (ADSs), each representing one Class A ordinary share of NIO at a price of $17.00 per ADS.

The automaker plans to use the net proceeds from the ADS offering mainly to increase the share capital of the NIO's ownership in NIO China, to repurchase equity interests held by certain minority shareholders of NIO China, and for research and development in autonomous driving technologies, global market development and general corporate purposes.

“With the closing of our recently announced ADS offering, we have further enhanced our balance sheet and optimized our capital structure to be better prepared for the acceleration of our core technology development, autonomous driving in particular, and the global market expansion in the future,” said Li.

NIO formally launched on August 20 the BaaS (Battery-as-a-Service) service, which allows customers to buy electric vehicles and subscribe the usage of battery packs separately.

The service will render the cost of using an EV more affordable. If users decide to purchase a NIO's vehicle and subscribe to use the 70kWh battery pack under the BaaS model, they can enjoy the vehicle purchase price with a 70,000 yuan ($10,236) deduction off the original price and pay a monthly fee of 980 yuan ($143) for the battery pack. Meanwhile, the users will still enjoy the purchase tax exemption and government NEV subsidies.

“The BaaS model has long been planned with our unique battery swap technologies. The successful launch of the BaaS model will enable NIO users to benefit from the lower initial purchase prices of our products, flexible battery upgrade options and assurance of battery performance,” said William Bin Li.