NIO’s Profit Model And Its Impact On Financial Performance

The words "new energy","energy revolution" and "green transformation" are important contents of China’s accelerated green transformation and the development of "dual carbon".In order to meet the new needs of industrial upgrading and green consumption,the new energy vehicle industry has deepened the national strategy of developing new energy vehicles,and has developed rapidly,and has become a key force to promote the development of China’s green economy.By the end of 2022,the total sales volume of new energy vehicles was 1.367 million units,ranking first in the world.However,because new energy technology is still in a state of exploration,in order to ensure the development and improvement of new energy technology,the company must invest a lot of money in research and development.As the competition in the industry becomes more and more fierce,government subsidies are tightening,and consumer demand is getting higher and higher,many new energy vehicle companies have fallen into a "cold winter" or even went bankrupt.Therefore,in the face of these difficulties,how should enterprises use financial tools to build a reasonable and efficient profit model to achieve their own profit goals,which is the concern of many experts and scholars.NIO only took 4 years to successfully land in the US market,becoming the earliest batch of electric vehicle companies in China,so,for new energy vehicle companies,NIO has a good reference value,combined with the actual performance of NIO,summarize the advantages and disadvantages of its profit model,and study the profit model,so as to provide a certain theoretical basis for the establishment and improvement of the profit model of other car companies in China.This paper selects NIO as the main research subject,starts from NIO’s profit model through literature analysis and case analysis,analyzes the characteristics of its profit model,starts from the four constituent elements of profit model,profit point,profit source,profit measure and profit barrier,conducts a systematic and all-round analysis of NIO,understands the impact of profit mode on the financial performance of the enterprise and the current market status,and analyzes a series of problems such as products,services,marketing expenses and other problems brought by the profit method.Furthermore,it is concluded that NIO’s profit model has both positive and negative effects on its financial performance.Finally,this paper analyzes NIO and gives some rationalization suggestions to help NIO further enhance its overall strength,and provide some reference significance for the overall development of the new energy vehicle industry,establish a more reasonable profit model,and improve the company’s financial performance.