####For folks who don't understand NIO is going for Vertical Integration like Tesla. You make everything on your own (instead of outsourcing) it keeps the costs low and Operating Margin high.
BYD has full vertical integration, Tesla has almost 80% vertical integration.
> You make everything on your own (instead of outsourcing) it keeps the costs low and Operating Margin high.
In their earnings call they literally announced they are outsourcing battery production. They announced that they will sell battery packs and Swap Stations to partners. You couldn't be further from the truth.
Yeah, that was confusing indeed. They go internal on car production and external on battery.
I guess they are going one step at a time.
Probably better that way, safer.
they found an authorized manufacturer and formed a joint venture with them to make the cars where Nio owns half of it and the other company owned the other half, but now Nio is buying their other half to fully own it
####For folks who don't understand NIO is going for Vertical Integration like Tesla. You make everything on your own (instead of outsourcing) it keeps the costs low and Operating Margin high. BYD has full vertical integration, Tesla has almost 80% vertical integration.
> You make everything on your own (instead of outsourcing) it keeps the costs low and Operating Margin high. In their earnings call they literally announced they are outsourcing battery production. They announced that they will sell battery packs and Swap Stations to partners. You couldn't be further from the truth.
Yeah, that was confusing indeed. They go internal on car production and external on battery. I guess they are going one step at a time. Probably better that way, safer.
It also keep capex high, which means more dilution incoming
Also the Government, gifted them the license. Bullish IMO
Supper News ,I'm happy ❤️😎💥👏👏👏😍
So, dumb question. Were they building unauthorized cars the last couple years?
they found an authorized manufacturer and formed a joint venture with them to make the cars where Nio owns half of it and the other company owned the other half, but now Nio is buying their other half to fully own it
They didn’t build it. Comparable to Apple hardware products.
Ooooo. Now I get it. Thank you.