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Nio Working On Lower-Priced Model With Lithium Iron Phosphate Battery: Report

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Nio Working On Lower-Priced Model With Lithium Iron Phosphate Battery: Report

NIO Inc. (NYSE: NIO) may soon have a model catering to the mid- to-low end market, if reports are to be believed.

What Happened: Nio has commenced development of a new vehicle model that will likely be positioned below its existing SUV models and its upcoming ET7 sedan, several Chinese media outlets reported, citing unnamed sources.

See also: How to Buy Nio Stock

The price of the new model could be 276,000 yuan ($42,560) if it is purchased under the battery-as-a-service scheme.

The price point could reportedly be even lower with a lithium ion phosphate battery. 

Nio is also reportedly working on an upgraded 70 kilowatt-hour battery pack that uses lithium iron phosphate batteries. The new cheaper batteries would be supplied by Nio's existing battery supplier CATL, and these batteries are currently undergoing B-sample testing, 36Kr reported.

Related Link: Nio To Announce Norway Expansion Plan On May 6 - What You Need to Know

Why It's Important: The foray into the low-to-mid sized market could help Nio broaden its customer base and kickstart further volume growth in the Chinese EV market.

Rival EV makers such as Tesla, Inc. (NASDAQ: TSLA) and XPeng Inc. (NYSE: XPEV) have started using lithium iron phosphate batteries in a bid to lower vehicle costs.

Related Link: Is ARK Invest's Cathie Wood Interested In Nio?

 

 

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