The company will own battery assets and lease them to users who sign up for the BaaS model, allowing NIO to expand its addressable market, according to BofA Securities.
The prices under the BaaS model are competitive in the premium electric car segment, the analyst said.
“The BaaS model would enable NIO users to enjoy lower initial purchase prices, flexible battery upgrade options (up to 100kWh battery pack to be launched later this year) and guaranteed battery performance.”
Nio’s flexible sales model and battery solution could not only broaden their addressing market, but also strengthen their competitive position, improve their market value and reduce the burden on their balance sheet, according to BofA.
