Here’s a bold statement: Nio is on the brink of revolutionizing the electric vehicle (EV) industry, and its latest move could reshape how we think about EV profitability. But here’s where it gets controversial—while many companies focus solely on vehicle sales, Nio is doubling down on its power business, specifically its charging and battery swap infrastructure. Is this a game-changer or a risky bet? Let’s dive in.
In a recent open letter, William Li, Nio’s founder, chairman, and CEO, revealed that the company has set its sights on achieving profitability in its power business. This comes hot on the heels of a major milestone: completing its 100 millionth battery swap service. And this is the part most people miss—over the past 11 years, Nio has invested a staggering RMB 18 billion ($2.6 billion) in this infrastructure, securing over 2,100 patents along the way. That’s a massive commitment to a model many initially doubted.
Li emphasized that this milestone isn’t just a win for Nio—it’s a validation of the battery swap model itself. With daily swap volumes surpassing 100,000, it’s clear that users and the market are buying in. But what’s next? Nio is gearing up for large-scale construction of its fifth-generation battery swap stations, and Firefly users will soon enjoy seamless access to these services. This is a big deal, especially since Firefly’s first model, launched in April 2025, already offers a BaaS (Battery as a Service) plan, though battery swapping wasn’t initially supported.
Here’s the controversial part: While some argue that battery swapping is too costly and complex to scale, Nio is betting big on its ability to not only recharge vehicles but also integrate into urban energy systems. Li pointed out that these stations alleviate grid pressure and enhance energy utilization through grid interaction. Is this a visionary move or an overreach? The jury’s still out, but Nio’s confidence is hard to ignore.
In 2026, Nio plans to build 1,000 new battery swap stations, a target Li reiterated from a January 1 live broadcast. With 183 stations already in Shanghai providing over 9,000 services daily, the company is clearly laying the groundwork for a profitable future. Nio even issued a profit forecast on February 5, anticipating its first quarterly profitability under both non-GAAP and GAAP standards in Q4 2025.
So, what do you think? Is Nio’s focus on its power business a smart strategy, or is it spreading itself too thin? Let’s spark a discussion in the comments—agree or disagree, your perspective matters!
