Chinese electric vehicle maker NIO Inc.’s (NYSE: NIO) latest model, the all-new ES6, has become a standout performer and is reminiscent of Tesla Inc.’s (NASDAQ: TSLA) Model 3 success story.
What Happened: In July, NIO reported a delivery figure of 20,462 vehicles, marking an impressive 103.6% year-on-year surge and a 91.1% leap from the previous month. Notably, the ES6 played a pivotal role in this remarkable achievement, contributing over 10,000 units to this record-breaking month.
The ES6’s popularity doesn’t come as a surprise; it’s positioned as a more affordable alternative to NIO’s ES8, targeting a broader market. Its compact size, coupled with enhanced ADAS capabilities powered by the NIO Adam supercomputer equipped with Nvidia DRIVE Orin system-on-chips has captivated consumers.
NIO’s strategic pricing moves also played a part in this success. The company, taking cues from industry leaders like BYD and Tesla, reduced prices across its models by 30,000 RMB ($4,200) in June, attracting more buyers.
Why It Matters: This meteoric rise echoes Tesla’s journey with the Model 3, a four-door sedan that was first unveiled in 2016 and within a week of starting reservations, received more than 325,000 pre-orders.
Tesla CEO Elon Musk revealed earlier that “Ramping up Model 3 production brought “extreme stress and pain” from mid-2017 to mid-2019, but it was a make-or-break period for Tesla. This dedication led to the Model 3 emerging as the world’s most popular EV in 2020,” said Tesla CEO Elon Musk.
NIO’s success aligns with the broader EV landscape in China. Li Auto reported an astounding annual increase of 227.5% in July deliveries of 34,134 vehicles. Meanwhile, XPeng witnessed its sixth consecutive month of delivery growth, although not quite matching last year’s July numbers.
“The company specializes in designing and developing electric vehicles. It develops battery-swapping stations for its vehicles, as an alternative to conventional charging stations. The company has raised over $5 billion from investors,” said Nio.
Produced in association with Benzinga
Edited by Priscilla Jepchumba and Judy J. Rotich
