The Nio logo is seen at the NIO booth in the National Exhibition Center in Shanghai, China, on April 28, 2025, during the Shanghai Automobile Show 2025. (Photo by Ying Tang/NurPhoto via Getty Images)
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Shares of Chinese electric carmaker Nio surged after the company unveiled one of its most affordable vehicles yet, underscoring the fierce price war in the domestic market.
Nio’s U.S.-listed shares rallied, climbing 9.27% to close at $5.54 on Thursday. In Hong Kong, shares rose as much as 10% in Friday morning trading.
The company late Thursday unveiled its latest ES8 SUV, aggressively priced at 308,800 yuan ($43,000) under a battery subscription plan. The program lowers upfront costs while allowing customers to swap or upgrade batteries through a monthly fee. Deliveries are set to begin in late September.
“The new generation ES8 is priced at very competitive levels with some attractive features, “Vincent Sun, a Senior Equity Analyst at Morningstar, told CNBC.
“We believe that the stock surge is due to the market factoring in strong new orders for the model (together with Onvo L90 launched earlier).”
Nio has historically targeted the high-end market, but has struggled as other companies rolled out vehicles that offer similar features at lower prices. To broaden its reach, the Tencent-backed carmaker has launched two cheaper brands: Onvo, aimed at the mass market, and Firefly, targeting young urban buyers.
Nio shares soar after releasing one of its cheapest EVs ever
The ES8’s pricing makes it one of the most aggressively priced premium SUVs, which typically cost between 338,000 yuan and 768,000 yuan.
However, Nio’s ET5T sedan holds the title for being the most budget-friendly NIO model – starting at 298,000 yuan.
This rollout of the ES8 comes as China’s electric vehicle sector faces mounting pressure. Nio and its EV peers Li Auto and BYD saw a dip in their car deliveries with 21,017 units in July, from 24,925 units in June, while competitors such as Xpeng, Xiaomi, Leapmotor, and Aito reported growth.
Intense competition at home, higher tariffs on exports and regulatory pressure in markets such as the EU have pushed Chinese EV makers, including Nio, to accelerate their global expansion plans.
Nio announced Monday that it would expand into three new markets between 2025 and 2026, including Singapore — its first entry into Southeast Asia — where it will debut its first right-hand drive model under the Firefly brand.