$NIO Inc.(NIO)$ it's hard to dramatically increase the price of each vehicle, but the price wars seem to be coming to an end and Nio is reducing some of its sales incentives, which will have the impact of increasing the price of their vehicles and thus improve margins modestly.
But even more importantly, Nio is reducing the cost to manufacture each EV with two huge breakthroughs in addition to an improvement in the supply chain. First, Nio is manufacturing its vehicles in-house now, and the third factory they're building will more than double their production capacity. Further, over the weekend, Nio displayed and discussed its new chip, which has 2 benefits. It substantially reduces the cost of the vehicles Nio builds by reducing or eliminating the need to buy expensive chips from Nvidia and others. And it will allow Nio to market and sell its chips to other car manufacturers.
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