NIO (NIO) Management Call Takeaways - Citi
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Citi analyst, Jeff Chung, reiterated a Neutral rating and $57.60 price target on NIO (NYSE: NIO) after hosting a call with management that yielded 5 takeaways:
- NIO Pilot attach rate is ~45% and for selective package ~70%
- Overseas market should have very minor impact in terms of financial performance this year but become important over the coming 3-5 years, China remains \the largest revenue source
- Chip supply shortage will gradually be fixed into 3Q21, management believes NIO see little impact on production. The battery supply bottleneck is expected to fade from Jun/Jul-21 and mgmt. does not see any possibility for a battery price hike within 2021.
- Production capacity is helped by NIO’s sharing all three models across lines, mgmt. expects the ET7 to share the same production capacity when it starts mass production in early-2022 as well. NIO expects total production capacity to reach 150k units per year per shift after completion.
- NIO has plans for another sedan model (after ET7) which might be positioned towards the lower-end market. In 2-3 years, the company intends to launch different models that fit variable niche markets.
Shares of closed at $36.85 yesterday.
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