Chinese EV maker NIO (NYSE:NIO) has initiated trials of battery swapping stations in China, according to Reuters.
The development comes as the company looks to pitch battery swapping against rapid charging. NIO’s Power Swap Station 3 can accommodate 21 battery packs and lower the cost of swap as well as battery swapping times.
As the competition in the EV space intensifies, battery swapping would also necessitate uniform standards. NIO already has over a thousand battery-swapping locations worldwide.
Overall, Wall Street has a consensus price target of $14.34 on NIO, implying a 60.58% potential upside in the stock. That’s after a 7.3% slide in the share price so far this year.
Concurrently, short interest in the stock remains at 7.1%, and a return on equity of -48% coupled with a price-to-free cash flow multiple of -299 warrants caution in the stock.
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