Nio Inc (NYSE:NIO) attributed the long queues at electric vehicle charging stations during the holiday season to rapid adoption of the greener transport option in China, cnEVpost reported on Wednesday, citing a company executive.
What Happened: The Chinese electric vehicle maker’s founder and chairman William Li said the recent charging experience was not very good for customers during China's National Day due to increased rush hour on the highway.
A number of EV owners went out for drives during National Day earlier this month without realizing there were not enough charging facilities along the highway, as per the report.
Li said electric vehicle adoption is taking place at a quick pace this year, ahead of expectations. The electric automaker said it has accelerated the construction of battery swap stations as well as supercharging stations this year.
The electric vehicle maker said customers can quickly swap batteries at stations along the highway and it was in talks with other players to open up its battery swap network. Rival Tesla Inc (NASDAQ:TSLA) has its own charging network in China.
The peak rush hour in battery swap service occurred on Oct. 1 when a single station provided a maximum of 118 services, averaging five battery replacements per hour, the report said.
Why It Matters: Quick battery charging option is a key detriment for the adoption of electric vehicles and automakers are taking different approaches. Tesla has superchargers. Nio made a move with its battery-as-a-service option, offering battery swapping and charging for Nio customers.
Electric vehicle makers are also exploring options to open their charging network to rivals.
NEV sales now contribute 20% of all vehicle sales in China, which has 6.78 million new energy vehicles as of September, as noted by cnEVpost, and the public charging infrastructure along highways is in need to catch up.
Price Target: Nio shares closed 2.06% higher at $36.24 a share on Wednesday.
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Photo: Courtesy of Nio