NIOtime #16: "Nio-nio" Embrace NIO Bull for 2021

Technical Chart. Media News Recap. NIO App Stories. All from a group of NIO global fans exclusively for the NIO community.

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Dear NIOtime gang,

It’s NIO time, Blue Sky is here!

We hope everyone’s doing great. This week NIO has completed a secondary offering deal of a total of 78.2M shares and raised $ 3.05B within two days. The focus of wall street this week was on Tesla's inclusion on the S&P 500 next Monday. As you may notice, there is also a massive inflow for NIO before yesterday's market close which pushed NIO to $48.00 before settling at $46.72. This week we will cover a few highlights by NIO on the new partnership, new mascot launching for NIO Life, and NIO App user feedback.

Technical Chart

This week NIO closed the week at $46.72 which is about 11.24% higher than last week’s closing price ($41.98). NIO experienced Monday selloff on the news of offering pricing set at $39.00 and slowly bouncing back to the price level prior to proposed offering dated last Thursday. As we studied in past offering trend, NIO is bounced back as expected when the secondary offering was completed on Wednesday.

From the technical chart, EMA8 and EMA21 are tightly twisted together with no clear sign of either upward or downward trends. However, the MACD indicator showing a potential bullish cross over if we see NIO is continuing its upwards momentum next week. Now NIO is above from EMA21 ($44.81) and EMA8 ($45.04) and these two price levels can serve as short term support for NIO. The downward levels we would watch closely is lower BB band ($38.88) and MA50 ($39.42). The upper level we would watch closely is upper BB band ($55.52).

This Week’s Top 6 Highlights by @theNIOtime

1. Completion of NIO Offering

2. State Grid EV Service Partnership

3. NIO Bull Superhero and Little Frog Friend

4. NIO App won No. 1 in China's Smart Car Connection App List

5. NIO Power Update: 165-167th Power Swap & 85-87th Power Charger

6. NIO House & Space Update: 196-199th NIO Space

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News

1. Completion of NIO Offering

On Dec. 16, 2020, NIO announced the completion of the offering of 68,000,000 American depositary shares plus 10,200,000 ADS for underwriters at a price of US$39.00 per ADS.

The Company plans to use the net proceeds from the ADS Offering and the sale of the additional ADSs mainly for (i) research and development of new products and next generations of autonomous driving technologies, (ii) sales and service network expansion and market penetration and (iii) general corporate purposes. (News Source: nio.com)

In last issue, we mentioned the timeline for the following events after the proposed offering on last Thursday. As expected, this week NIO annouced the offering pricing on Monday and offering completion on Wednesday. There is slight change on the amount of the total offering to 78.2M from 69M this time. NIO has raised about 3.05B additional cash

If you are new retail investors or long term investors who wish to add more, a 5% range of $39.00 is worth considering for new position or additional position if your portfolio is allowed. The offering is completed within two days and this signals the EV stocks are still favorable by institutional investors and their cost basis for this round of offering is $39.00.

2. State Grid EV Service Partnership

On December 14, NIO signed the "Framework Agreement on Deep Cooperation in Charging and Energy Services with State Grid EV Service at NIO Center in Beijing Oriental Plaza. Since 2017, State Grid EV and NIO have been strategic partners and have already achieved cooperation in public charging interconnection and highway energy services, this time, continuing to deepen cooperation, they will establish a deep partnership in the field of charging and switching operations and strive to build 100 charging and switching stations nationwide in 2021.

In 2020, NIO and State Grid EV have launched a pilot of V2G (using the power battery of electric vehicles to reverse power to the grid) technology, and in 2021 will also promote V2G technology to encourage electric vehicle users to charge during the low hours of electricity consumption and discharge to the grid for peak regulation during the peak hours of electricity consumption, so as to achieve peak shaving and fill the valley and improve the efficiency of grid capacity. (News & Photo Source: NIO App)

NIO as a leader in battery swapping station technology is always looking for strategic partners like State Grid EV to enhance the expansion network of power charging and swapping facility. With more industry partnerships to facilitate NIO power network nationwide, this will help NIO to acquire more users as tapping swapping benefits that others EV doesn’t have the capability now.

In addition, NIO has also tapping onto V2G infrastruture with State Grid EV which China is actively promoting as the foundation of the country. V2G infrastructure is another overlooking industry and worth exploring in China.

3. NIO Bull Superhero and Little Frog Friend

Last week NIO Life is launching a new NIO mascot product series named NIO Bull with a nickname, “nio-nio”. Do you know why NIO Life is releasing NIO Bull series? This is because 2021 is a bull year in the Chinese Lunar calendar.

We think NIO make a very brilliant move in the beginning focusing on user enterprise company. In our views, NIO is not purely selling EV vehicles, but also promoting merchandised items on its NIO App. Can you imagine when is your last time you buy merchandiesed items from your car manufacturers? Nope, in our memory. We don’t even bother to look what our current ICE manufacturers offer, as their items are either not creative or attractive enough to be practical. This is no the case for NIO as NIO has dedicated team to offer products that NIO users want and usually on high demand. One evidence to prove our observation is the spending power of NIO users on NIO app as we tweeted earlier.

NIOtime @theniotime

1/ Another overlooked and not many media covered component of $NIO. Here’s top ten of #niouser spending on #niolife this year. Let us translate for you. The top1 user has spent ~ USD 22,000 = ~520 NIO stocks as of today’s close. We believe NIO brand as premium lifestyle will make

We deeply believe NIO life is an overlooking sector for NIO and NIO life will expand expontentially and eventually becoming a key revenue contribution for NIO in upcoming years.

4. NIO App won No. 1 in China's Smart Car Connection App List

On December 16, 12365auto web and Car Research Consulting Beijing Co., Ltd jointly released the research report "China Automotive Smart Internet Product Experience and User Demand Study - Smart Car Connect App". On the list of 20 mainstream car brands' Smart Telematics Apps, NIO ranked first with an overall rating of 4.5.

The research report focuses on four aspects: "user behavior", "quality issues", "satisfaction" and "user needs and preferences" in the use of smart car apps, and rates each brand's app in five dimensions: "control/monitoring", "ecological services", "social forum", "operating experience" and "system security", combining user research and real car evaluation.

At present, the NIO App has over 1.6 million registered users and 150,000 daily users, making it one of the most popular smart car apps. (News & Photo Source: NIO App)

Without a doubt, NIO app is another briliant product by NIO as a mobile lifestyle app for NIO users and quality life seekers, where they can read thoughtful and quality content, explore tasteful and interesting activities, share wonderful and touching moments, and enjoy one-stop car services with NIO vehicles.

As we can see Tesla only ranked 15th on the app ranking list with only 3 stars rating, the advantage of NIO is emphasized in term of app UI/UX design and experience. NIO is clearly a winner among EV brands for user enterprise company which do care about its users and listen to their voices in adapting their feedback onto their lines of products. This is a superb experience for any car owners where your car manufaturers are willing to take your feedback and continue to improve their products for better experience. We have enough of complaints and one-way feedback dealing with current ICE car manufacturers. Our car buying experience ends at the moment the dealers hand you the car keys.

For this reason, we are willing to be the first batch of NIO users when they become available internationally. How about you? Are you feeling excited and looking forward to buy NIO car when it’s available at your country? Please let us know in the comment below.

5. NIO Power Update: 165-167th Power Swap & 85-87th Power Charger

So far NIO has three new Power Swap station which sums up to 167 power swap stations and three new Power Charger station which sums up to 87 power charger stations in China. (News Source: NIO App)

NIO Power Swap #165 | Xiandai Electric Factory, Tangshan

NIO Power Swap # 166| Red Star Macalline(Binhu Supreme Store), Wuxi

NIO Power Swap # 167| Shangdian Service Area, Beijing

NIO Power Charger #85 | Xiandai Electric Factory, Tangshan

NIO Power Charger #86 | Suning Plaza, Zhenjiang

NIO Power Charger #87 | Xintiandi Yilaitai, Changchun

We continue to see expansion of NIO Power Swapping and Charging stations nationwide. We would want to see more of these coming in upcoming weeks and more aggresively when they launch second generation NIO Power Swap in first half of 2021 (We expected they launch it between March to May)

6. NIO House & Space Update: 196-199th NIO Space

This week NIO has four new NIO Spaces launching this week which sums up to 199 NIO houses and spaces in China. For more photos, please kindly refer to our NIOtime Facebook photo albums here. (News Source: NIO App)

NIO Space # 196| Suning Plaza, Xuzhou

NIO Space # 197| Changbai Wanxiang Hui, Shenyang

NIO Space # 198| Xishan Yaohan, Wuxi

NIO Space # 199| Qinghe Wanxiang Hui, Beijing

Finally, the target of 200th NIO House and Space in 2020 are nearing the corner. On December 2020, the 200th NIO Space will be launching and marked Li Bin’s promise for 200 NIO spaces in 2020. We see this is good indicator for NIO to expand its sales network nationwide. With new NIO space launching in new cities, more people are in touch with NIO and more willing to buy the cars.

Summary

This week NIO stock was performing steadily despite the secondary offering news. We viewed the secondary offering event as a good sign for the company in the long term. The fundamental of the company is not changed much with the goal of 200th NIO spaces is achieved next week and the continual expansion of the NIO Power facility nationwide. The market sentiment is currently building around NIO day which is set on January 9th, 2021 as well as December vehicle delivery number in the first week of January.

We are two weeks away from completing 2020 and NIOtime is a growing newsletter community exclusively for NIO. We feel there is much more NIOtime can do for NIO global investors. We would like to hear your feedback on how we can improve better next year and suggestions on the content that you wish to read.

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