Here’s a bold statement: Nio is on the brink of revolutionizing its power business, and it’s not just about charging batteries anymore. But here’s where it gets controversial—can a company that’s poured billions into infrastructure finally turn a profit in this space? Let’s dive in.
In a recent open letter, William Li, Nio’s founder, chairman, and CEO, revealed that the company is doubling down on its power business operations with a clear goal: profitability. This comes hot on the heels of Nio’s impressive milestone—completing its 100 millionth battery swap service. And this is the part most people miss—this isn’t just a number; it’s a testament to the large-scale validation of Nio’s battery swap model by users and the market.
Over the past 11 years, Nio has invested a staggering RMB 18 billion (approximately $2.6 billion) into its charging and battery swap infrastructure. That’s not all—they’ve also secured over 2,100 patents, showcasing their commitment to innovation. Now, Nio is gearing up for the large-scale construction of its fifth-generation battery swap stations, and Firefly users are in for a treat: battery swap services will soon be available to them, too.
But let’s pause for a moment. Here’s a thought-provoking question: With such massive investments, why has profitability been elusive until now? William Li hints at the answer—it’s about enhancing the commercial operational capabilities of their network. By laying a solid foundation, Nio aims to turn its power business into a profitable venture. Daily battery swap service volumes have already surpassed 100,000, and these stations are becoming integral to new power systems, even alleviating grid pressure and improving energy utilization.
Battery swap stations, Li emphasizes, are more than just vehicle recharging points. They’re becoming key players in urban energy systems, offering capabilities that extend beyond the automotive sector. This dual functionality could be a game-changer, but it also raises questions: Is this the future of urban energy, or is Nio biting off more than it can chew?
Looking ahead, Nio plans to build 1,000 new battery swap stations in 2026, a target reiterated by Li in a January 1 live broadcast. With 183 battery swap stations already in Shanghai, providing over 9,000 services daily, the company is clearly on the move. And let’s not forget—Nio recently forecasted its first quarterly profitability under both non-GAAP and GAAP standards in Q4 2025. Could this be the turning point?
Here’s where you come in: Do you think Nio’s ambitious plans for its power business will pay off, or is the road to profitability still too uncertain? Share your thoughts in the comments—let’s spark a discussion!
