NEW YORK, NY – SEPTEMBER 12: Logos for Chinese electric car company NIO are displayed at a trading post on the floor of the opening bell at the New York Stock Exchange (NYSE), September 12, 2018 in New York City. The Shanghai-based electric car company opened for trading at $6 per share. (Photo by Drew Angerer/Getty Images)
Drew Angerer | Getty Images News | Getty Images
The Hong Kong-listed shares of Chinese electric carmaker Nio surged as much as 14.84% Monday, extending its gains for the seventh consecutive session.
The rally comes after the company unveiled its latest ES8 SUV on Aug. 21. The model is priced at 308,800 yuan ($43,000) under a battery subscription plan, making it one of Nio’s most affordable automobiles.
By comparison, Nio’s premium SUVs typically cost between 338,000 yuan and 768,000 yuan.
Nio’s subscription plan lowers upfront costs while allowing customers to swap or upgrade batteries through a monthly fee. Deliveries are set to begin in late September.
The U.S.-listed shares of the carmaker climbed 9.27% to close at $5.54 on Thursday, following the announcement of its new vehicle, and rallied 14.44% on Friday to end the day at $6.34. Meanwhile, its shares in Hong Kong ended Friday’s trading session 11.12% higher.
Nio shares soar after releasing one of its cheapest EVs ever
Nio’s rollout of the ES8 comes amid mounting pressure in China’s electric vehicle sector.
The Tencent-backed company has historically targeted the high-end market, but is now facing intense competition from other companies rolling out vehicles with similar features at lower price points.
Nio recently launched two cheaper brands — Onvo, which targets the mass market, and Firefly, which caters to young urban buyers — to capture a broader range of customers.
— CNBC’s Victoria Yeo and Evelyn Cheng contributed to this report