That’s right gang, we have a subscription service for your powertrain! Insuring, licensing, and financing are all done, a managment company has been founded, and it’s been approved by the China Automotive Technology & Research Center (CATARC). Your New Electric Car! *Batteries Not Included
How much of a discount do you get for buying an electric car without the battery? Actually, just over $10,000 off of MSRP for the basic 70kwh battery. The monthly subscription for that power unit class comes out to $142.
It takes 6 years to breakeven at that rate. Financially, getting $10,000 off of sticker, all the same tax exemptions and subsidies, plus the interest you save financing a significantly lower principal amount are a recipe for this service to quickly move to a near 100% take rate in no time. I mean, why would you want to own a 6 year old battery, anyways?
It makes more sense to save the cents since you can use any of the 143 Nio battery swap stations to switch to a fresh new battery in 5 minutes. No worry of charge degradation, easy battery recall service, battery upgrades due to advancing tech, or bumping up to a 100kWh unit for more performance or down to a 70kWh to save some cash on a monthly basis.
You’re buying the car based on features, NOT powertrain. Game changing stuff! If China continues to encourage battery swapping to the point of incentivizing the method, then you end up with Tesla being a generation behind China EV makers.
That’s a moat for Nio in the short term, an advantage for China’s domestic EV manufacturers, and the only real catalyst for a Tesla dive in market share. If Nio gets their own manufacturing plant (they look to be heading towards production capacity with JAC), they could double their market share within the first two years of operation.