I am more optimistic about Xpeng Motors, while I believe NIO’s battery swap model is a strategy that requires huge investments to build swap stations, which is a completely flawed decision. The construction of swap stations not only requires massive capital investment but also faces high operating costs and maintenance challenges. In a large market like China, building and operating such a vast infrastructure is no easy task, and the adoption and acceptance of the battery swap model by users are uncertain.

In contrast, Xpeng Motors focuses more on improving charging infrastructure and developing intelligent technologies, while also leading the industry in battery technology and autonomous driving innovations. This allows Xpeng to maintain high operational efficiency and profit potential with less reliance on heavy asset investments. NIO’s over-reliance on the battery swap model has led to continuous large losses, which is clearly detrimental to the company’s long-term sustainable development.