Is Nio's ES6 Its Tesla Model 3? China EV Maker's Newest Model Drives Record-Breaking July

Chinese electric vehicle maker NIO Inc‘s NIO latest model, the all-new ES6, has become a standout performer and is reminiscent of Tesla Inc‘s 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.

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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.

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.

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