What happened
Electric vehicle maker Nio (NYSE: NIO) picked up a bit of speed on Thursday, with its shares closing the session up by 1.4%. With the Chinese electric car manufacturer already making huge strides in its home market, its official entry into Europe is fueling even more interest in the stock.
So what
On Thursday, Nio announced the official commencement of deliveries of its flagship SUV, ES8 in Norway. Nio also announced it will:
- Open a Nio House in Oslo on Oct. 1. This will be the first of its unusual showroom/clubs to open outside China.
- Offer battery-as-a-service (BaaS) in Norway.
- Build 20 power swap stations in Norway by the end of 2022, including locations in its five largest cities.
- Launch its service and delivery center in Oslo in October.
Image source: Nio.
The concept of Nio Houses, which offer various amenities like cafes and library rooms to Nio owners, is unarguably the biggest branding move the EV maker has attempted in its efforts to win customer loyalty.
BaaS is another unique offering from Nio under which customers have the option to buy its vehicles without batteries at lower prices. Instead, they rent batteries and swap them at power swap stations as and when required under subscription-based plans.
"Today marks a significant moment in the history of Nio. Today the very first European users have the opportunity to experience what it means to be part of the Nio community," said Nio Europe CEO Alexander Schwarz. He further stressed that Norway is only a starting point for the company's growth beyond China.
Now what
Expanding its business worldwide is a logical move for the automaker. Its SUVs are already a hit in China, with the company topping Tesla's numbers to pull a 23% share of China's all-electric SUV market in April. With Nio now entering Europe and already planning to launch its flagship sedan ET7 in Norway next year, investors are unsurprisingly upbeat about the prospects of what I believe is one of the best electric vehicle stocks you could buy for the next decade.
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends NIO Inc. and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
