As new automakers battle in the mid-game and tech giants cross boundaries into car manufacturing, the throne of "the first new automaker on the STAR Market" remains vacant. NIO's listing on the Hong Kong Stock Exchange completed the trio of "NIO-Xpeng-Li Auto" in the Hong Kong market. However, from venturing into smartphone manufacturing to massive investments in battery swap stations and joint research centers with CATL, NIO's media presence seems increasingly disconnected from its actual market performance.
The Painful Path to Listing: William Li's Serial Entrepreneurship
In 1991, William Li, the liberal arts top scorer from Taihu County, entered Peking University, beginning an entrepreneurial journey worthy of a novel protagonist. Majoring in sociology with a minor in law, he taught himself computer programming in his spare time, becoming the only liberal arts student at Peking University to obtain the National Computer System Analyst certificate. More remarkably, while pursuing these three disciplines, Li held over 50 part-time jobs during his university years and started his first business before graduation.
In 1996, the 22-year-old Li founded Antarctic Technology, a company providing web hosting services focused on server leasing and domain name sales. However, during the infancy of China's internet industry, the server leasing business struggled to survive.
The turning point came in 2000 when Li founded BitAuto, a car information website that caught the last wave of China's internet boom while coinciding with the golden age of China's automotive industry. This era saw the first national policy encouraging family car ownership and the launch of affordable models like the Buick Sail.
After surviving the dot-com crash through sheer perseverance—at one point reduced to just $10 in his pocket—Li rebuilt BitAuto into China's largest automotive media company, listing it on NYSE in 2010. But this success came at great personal cost, with Li describing the pre-IPO years as more painful than his early debt-ridden days.
Ill-Timed Ambition: NIO's Birth and Growing Pains
In 2012, the idea of manufacturing electric vehicles took root in Li's mind during an era when most consumers still doubted whether EVs could function as practical transportation. Li envisioned this as China's opportunity to lead in the global automotive industry through smart EVs rather than simply catching up with traditional automakers.
Assembling an all-star team that included executives from major corporations across real estate, automotive, and technology sectors, Li launched NIO in 2014 with $150 million of his own money and backing from China's tech elite including Pony Ma (Tencent), Richard Liu (JD.com), and Lei Jun (Xiaomi).
NIO's 2017 ES8 launch event at Beijing's Wukesong Arena became legendary, featuring a now-famous endorsement from Richard Liu's wife Zhang Zetian: "William spent 15 minutes explaining NIO's plan, and my husband said 'Yes' in just 10 seconds."
Yet NIO's rise coincided with the darkest period for China's EV startups. Between 2013-2016, over 300 EV startups emerged—most existing only on PowerPoint slides as subsidy-seeking schemes. When LeEco's financial crisis erupted in 2016, public skepticism about new automakers peaked, forcing the typically media-shy Li into the spotlight to defend NIO's legitimacy.
The turning point came in 2018 when NIO began mass deliveries and listed on NYSE, becoming the fastest automotive startup to go public with a $6 billion valuation. Though controversies persisted, NIO earned recognition as "China's Tesla"—a comparison Li resisted, insisting "Our aspiration isn't to be China's Tesla. We believe we are NIO of the world."
Rescue at the Brink: Hefei's Lifeline and the Sword of Damocles
By 2019, NIO teetered near collapse as funding dried up amid product recalls, executive departures, and a stock price plummeting to $1.19. Dubbed "2019's most unfortunate man," Li later admitted, "In 2020 when NIO was in greatest peril, we nearly died."
Salvation came from an unlikely source—the Hefei municipal government. In April 2020, strategic investors led by Hefei injected ¥7 billion ($1 billion) into NIO China in exchange for a 24.1% stake, with NIO retaining 75.9%. This lifeline came with stringent performance requirements rumored to include:
- ¥14.8 billion revenue in 2020 (3 models)
- ¥120 billion revenue by 2024 (6-8 models)
- ¥420 billion cumulative revenue 2020-2025
- ¥7.8 billion total taxes
- STAR Market listing by 2025
While NIO survived, the aggressive targets—requiring roughly 20,000 annual deliveries growth—loom large. Though 2021 saw NIO deliver 91,400 vehicles (109% growth), its market share actually declined to 2.6% as rivals like Xpeng (98,200 deliveries) surged ahead.
Hong Kong Listing: A Stepping Stone to Greater Ambitions?
NIO's 2022 Hong Kong listing—conducted as an "introduction" without raising new capital—signals strategic positioning rather than immediate financial need. With ¥47 billion cash reserves and recent $2 billion fundraising, NIO claims no urgent financing requirements.
Industry observers note the move likely prepares for a future STAR Market listing, where no new automaker has yet succeeded. The science-focused board's reluctance to admit EV makers speaks volumes about the sector's technological credibility challenges.
As Li once said, "When you buy a car, you're not just buying a vehicle—you're buying a ticket to a new lifestyle." Now, with NIO's dominance waning amid China's automotive revolution and Li's reputation damaged by controversial remarks about gasoline car owners, the company's future may hinge not on lifestyle branding, but on breakthrough technological achievements that could finally secure its place on China's premier tech board.