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Nio Is Adding New Wrinkles to Tesla's Playbook. Does That Make It a Buy?

By Brian Stoffel and Brian Feroldi – Aug 8, 2021 at 8:00AM

Key Points

  • Battery-swapping could add a moat via high switching costs.
  • And the Nio House initiative is helping brand value.
  • But there's a lot more pure-play competition than in the United States.

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It could add two moats, in ways that Tesla hasn't captured.

Historically, investing in China has been a dicey proposition. Fraud, whipsaw decisions by the ruling Communist party, and a basic lack of familiarity with the country and culture keep many away. Often, that leads international investors to look elsewhere.

So when Motley Fool contributors Brian Stoffel and Brian Feroldi dug into Nio (NIO 3.75%), often referred to as the "Tesla (TSLA -1.14%) of China," they weren't sure what to expect. But two key initiatives -- battery-swapping and the buildup of brick-and-mortar stores -- pleasantly surprised them.

The video below summarizes an hour-long deep dive the two did into the company. Watch to find out more about these initiatives, and whether that's enough to make Nio investable.

Brian Stoffel owns shares of Tesla. The Motley Fool owns shares of and recommends NIO Inc. and Tesla. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Tesla Stock Quote
$180.83 (-1.14%) $-2.09
Nio Inc. Stock Quote
Nio Inc.
$10.50 (3.75%) $0.38

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