NIO Shares Surge After ES9 SUV Launch with Lower Price

NIO Shares Surge After ES9 SUV Launch with Lower Price

Chinese electric-vehicle maker NIO's shares rose sharply after its new ES9 sports utility vehicle launch with a lower-than-expected price tag. Its shares rose 8.4% in early Thursday, trading to 45.24 Hong Kong dollars ($5.77), outperforming Hang Seng Index's 1.5% losses.

ES9 Pricing and Features

NIO launched the new flagship ES9 sport-utility vehicle on Wednesday at a starting price of 390,000 yuan under its battery-swapping subscription plan, or 498,000 yuan with the battery included. CCB International analyst Qu Ke noted the pricing was quite attractive, especially for the battery-swapping option, which could help preserve resale values in the long run.

Sales Outlook and Analyst Views

The new model is being closely watched as investors look to see whether NIO can introduce more popular models to sustain its sales momentum this year. The company reported a sharply narrowed first-quarter net loss of 496.0 million yuan. HSBC Global Research analysts wrote that NIO's key volume and margin driver ES8 showed resilient order and delivery momentum, especially after the ES9 presale in April. Nomura analysts noted the company needs to roll out more in-demand models to further support its sales, market share and margin profile. Following positive customer feedback from ES9 preorder data, Nomura remains positive on the company and expects NIO to deliver sequential improvement in shipments and financials in the later quarters of this year.

NIO's management team said during its earnings call that it will release a five-seat version of its ES8 in the second half of the year and is targeting three to five new models annually over the next few years.