Nio, Inc. (NYSE:NIO) has entered the smartphone arena to set itself apart from competitors in China’s fiercely competitive electric vehicle market.

What Happened: Nio’s CEO, William Li, introduced the Nio Phone in Shanghai, China’s commercial hub, unveiling its unique features, such as the ability to control multiple cars with a single device and unlock a car even when switched off, according to a Reuters report.

Specifications: According to CnEVPost, the Nio Phone has:

• Qualcomm Snapdragon 8 Gen 2 system-on-chip with 16 GB RAM and 1 TB storage
•  Sky user interface, an Android-based mobile operating system,
•  An action button that allows users to activate over 30 functions related to vehicle control
•  Samsung’s 6.81-inch curved screen with 2K resolution, supporting a 1-120 Hz refresh rate
•  5,200 mAh battery, supporting 66 W wired fast charging, 50 W wireless fast charging, and 10 W reverse charging

See Also: How To Buy Nio (NIO) Stock

Pricing: The Nio phone is priced at 6,499 yuan ($890) for the base model, with a higher-tier version featuring 16 GB RAM and 1 TB storage available for 7,499 yuan ($1,027).

Why It’s Important: Nio’s smartphone aims to entice customers with enhanced connectivity and services. 

Incidentally, in the aftermath of Tesla Inc (NASDAQ:TSLA) CEO Elon Musk‘s acquisition of Twitter, now renamed X, reports suggested Apple will likely yank the then-Twitter app off its App Store. In those early days, Apple also slowed advertisements on Twitter in a wait-and-watch mode which direction the social-media platform will take in a post-Musk era.

In response, Musk threatened to create an alternative smartphone if Apple and Google removed Twitter from their app stores. However, no updates have been provided on a “Tesla smartphone” despite a flurry of online chatter.

Financial Implications: The launch of the Nio phone could strain the company’s finances. Nio is still operating at a loss and facing shrinking gross margins due to the fierce competition in China’s EV market. 

Earlier this week, the company announced a $1 billion senior convertible note offering, leading to a more than 17% drop in its stock price on Tuesday.

Nio’s stock closed up 3.16% at $8.82 on Wednesday, according to Benzinga Pro data. In mid-session on Thursday in Hong Kong, the stock was trading flat with a slight negative bias.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next: Nio Stock Dips After Q2 Results Trail Estimates, EV Maker Eyes Q3 Rebound In Deliveries And Sales

Photo courtesy: Nio