NIO Stock Slips Overnight Despite Major Geely Deal — CEO Pushes Automakers To Stop Duplicating Swap Networks

• Li said Nio and Geely should share charging and battery-swap infrastructure to reduce duplicate investment.
• Geely will contribute Yiyi Power and about $95 million in cash for a 30% stake in Nio Power, with Nio China retaining control.
• Nio will acquire a 10% stake in Geely’s Haohan Energy as the companies connect charging networks and develop common swap standards.

U.S.-listed shares of Nio, Inc. (NIO) slipped more than 3% overnight heading into Tuesday as CEO William Li said the company’s partnership with Geely Holding Group should help automakers share charging and battery-swap infrastructure instead of spending separately to build overlapping networks.

Nio’s U.S.-listed shares rose 0.3% on Monday but are down 13% this month, putting them on track for a fifth consecutive monthly decline. 

Nio CEO Calls For Shared Swap Networks

At the companies’ signing ceremony on Monday, Li said Nio and Geely would still compete for car buyers. “Even our two companies will have some competition, which objectively exists, and healthy competition is not involution,” EV noted.

He said that the industry should now work on “how to converge, reduce duplicated investment and waste, and raise each company’s efficiency.” Connecting networks and agreeing on common technologies could allow automakers to widen access without each funding a separate buildout. Li also put the goal in commercial terms. While describing a model of open cooperation, he said, “Only this way can we all really make some money.” 

Geely agreed earlier on Monday to contribute Yiyi Power and 640 million yuan ($95 million) in cash for a 30% stake in Nio Power. Nio China would retain a controlling 63.6% interest. Separately, Nio China would acquire 10% of Geely’s Haohan Energy charging business. 

Nio Targets 10,000 Swap Stations By 2030

The companies plan to connect their charging networks and jointly develop battery-swap tech and standards for passenger vehicles. Geely says it will develop consumer models that can use Nio Power’s swap network, though it has not identified a model or launch date. Its Yiyi Power swapping business, which serves commercial fleets, is set to be integrated into Nio Power.

Nio’s chargers already draw substantial use from outside its own customer base. Li said more than 85% of the electricity delivered through the network goes to drivers of other brands. In the joint announcement, he said the Nio-Geely collaboration “is open to the broader industry” and invited other automakers to join.

That wider reach could matter to Nio’s long-term swap ambitions. The company had 4,126 swap stations and 5,307 charging stations in China as of Sunday after an investment of more than 20 billion yuan in charging and swapping. Li said Geely’s resources boosted his confidence that Nio Power could reach 10,000 swap stations by 2030.

How Do Retail Traders Feel About NIO?

On Stocktwits, retail sentiment for NIO has been ‘bearish’ over the past week amid a 28% rise in 24-hour message volumes.

One user said, “In my opinion, 30% of NIO Power is a lot to give up. There must be something substantial that Geely has promised NIO for that additional 10% stake. This also signals that this partnership has more meat than the other MOUs signed in the past.”

Another user said, “$NIO Would be great at this stage if Geely buys NIO at $10 a share. I know what most of us hoped for a lot more especially at the beginning of the year. Alas, this is where we find ourselves now.”

Nio’s U.S.-listed stock has declined 30% year-to-date.

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