"My only disappointment is the poor quality of the false bear narrative. Surely shorts could have done a better job in frightening weak Nio holders."

Editor's note: This is a guest post from Rafi Khan, an Nio investor, and does not represent the views of CnEVPost.

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From June 13th to June 28th:

Nio is also up 92% from the 2022 year low of $11.67 in May 2022.

So short attack on Nio was probably overdue.

My only disappointment is the poor quality of the false bear narrative.

Surely shorts could have done a better job in frightening weak Nio holders.

Attack was made on Nio's relationship with Battery Swap partner Wuhan Weineng (Mirattery) & how Nio treats revenues from Mirattery.

Most importantly big Thank You to Nio shorts because after all their delving if all the dirt they could dig on Nio was related to the battery swap company, then I am now even more relaxed & confident in my Nio positions.

Facts are:

Firstly it is clearly ludicrous that CATL & other financially savvy investors, owning 80%, would take either revenue or profit hit just to help Nio, owning 20%, artificially boost profits.

This would subject CATL & others to multibillion lawsuits in U.S. & China.

Secondly here are some facts that totally refute & rubbish arguments presented by the Grizzly Research report:

So now let us take the Present Value of the monthly payment of RMB 980 for 30 years:

The reason for using a 30-year period is because minus battery, that could be the expected life of Nio EV similar to an airplane which uses an aluminum body.

In addition to the present value of future payments, Mirattery will also own batteries which they will recycle for raw materials.

Also with BaaS, Battery Swap Nio is guaranteed to maintain a relationship with the owner throughout the life of the EV – can any other Auto company claim that!

Now let us say that 30 years is too long a period for Nio's battery swap partners' business model relative to the useful life of EV.

So now let us take the Present Value of the monthly payment of RMB 980 for 20 years:

Now consider even a ludicrous/unrealistic period of just 10 years which equals the Nio warranty term, then the present value of RMB 980 monthly is:

Perhaps because Mirattery's business model is so profitable & strong, they can afford to keep monthly payments stable even when raw materials & EV battery prices are rising.

So in all circumstances for periods 10, 20 or 30 years & for all interest rates 4%, 5% or 6%, Nio & its battery partners make healthy profits from getting RMB 980 monthly & only paying Nio RMB 70,000.

For all the wanna be Mirattery CEOs that are out there including me. Here is a possible scenario:

The arrangement benefits Nio as well:

In addition to the above significant benefits to Mirattery Battery Swap company, potentially tens of thousands & in the future millions of Chinese can achieve their dreams of higher social standing, movement to upper-middle class, EV ownership & Premium Luxury Status that Nio EVs / Nio Community / Nio Houses / Nio Life offers to them.

Plus no doubt there will be a joy for many, especially in China, that after decades of dominance, German Auto behemoths finally face legitimate challengers potentially threatening their supremacy at least in China & Europe in the Premium Luxury segment.

BaaS Battery Swap plus Subsidies offers Millions in China & Europe the opportunity to buy ET5 Luxury, Nio House Status for VW ID entry prices.

Is that the misleading fraud that Grizzly is referring to?

The chance for millions to improve their status & lives!

The real fraud is trying to mislead/frighten millions of retail investors to panic and sell for benefit of a limited number of big financial sharks.

There are other benefits emanating to & from the battery swap company.

Is this the “fraud” Grizzly Research report is seemingly talking about?

What Grizzly Report shows me is how frightened Nio Shorts are of:

Now let me give you some truly mind-boggling exciting news:

Now if only Nio can sort out its friggin low price chip & other supply problems – then the hyper-growth can start.

Not an Auto Analyst Nor Financial Advisor JMHO DYODD