The Chinese EV company plans to invest about $460 million over five years into the nationwide network called NIO Services. The platform includes vehicle inspection, evaluation, acquisition and sales.
Separately on Sunday NIO announced record deliveries for December as well as 17,353 vehicles delivered last quarter, an increase of 111% year-over-year. Overall the company’s yearly deliveries rose 112% in 2020, to 43,728 vehicles.
NIO outperformed in 2020 among the EV players, with the stock up 1112.4%. Last year the company beat delivery estimates month after month. It also announced a liquidity injection over the summer, the launch of a battery subscription program, and indicated its planning to expand into Europe.
Still, Tesla (TSLA) which rose 743.4% in 2020, dwarfs NIO in terms market share and size. For now NIO only delivers in China while Tesla vehicles are available in Asia, the U.S., and Europe.
Tesla delivered 180,570 vehicles in the fourth quarter, reaching a total of 499,550 deliveries last year, just shy of its 500,000 target. The company though said its final numbers could vary by up to 0.5% or more.
Tesla stock rose to new highs in pre-market on Monday morning.
So proud of the Tesla team for achieving this major milestone! At the start of Tesla, I thought we had (optimistically) a 10% chance of surviving at all. https://t.co/xCqTL5TGlE
— Elon Musk (@elonmusk) January 2, 2021
Money has poured into the electric vehicle space during the pandemic as Chinese EV makers XPeng (XPEV) and Li Auto (LI) debuted on the public markets in 2020. XPeng was up 101% and Li Auto rose 75% last year.
Quantumscape (LI), the solid state battery company which went public via a SPAC just a couple of a months ago, increased 753% by the close of 2020.
Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre