Nio CEO Says Survival Matters Most As Company Bets On Aggressive Pricing For New ES8

Nio Inc. NIO stock climbed in premarket trading on Friday after unveiling the newest version of its flagship SUV, the ES8, and opening pre-orders for the model.

The third-generation ES8 comes equipped with a 100-kWh battery and carries a presale price tag starting at 416,800 Chinese yuan (about $58,030).

The company emphasized that the updated SUV has lower production costs than the earlier model, yet still achieves a positive gross margin even under its aggressive pricing strategy.

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William Li, the automaker’s founder, chairman, and CEO, noted during a media briefing that maintaining competitive pricing is crucial for Nio’s survival, CnEV Post reports.

If prices remain high, it will be difficult to compete in the market, Li said, underscoring that long-term viability remains the company’s primary focus, the report adds.

Nio recently disclosed that July deliveries fell to 21,017 units from 24,925 in June.

Of those, 12,675 vehicles came from the Nio brand, 5,976 from its budget Onvo line, and 2,366 from the Firefly brand. The decline highlights the company’s ongoing challenge to stabilize sales momentum while launching new products.

Investors will get further clarity on Nio’s financial health when the company reports second-quarter results on Sept. 2 before the market opens.

Analysts anticipate a net loss of 31 cents per share alongside $2.75 billion in revenue, according to consensus estimates.

Wall Street analysts appear divided on Nio’s prospects.

JPMorgan reiterated a Neutral rating, while Goldman Sachs upgraded to Neutral from Sell.

Barclays took a more cautious view, keeping an Underweight rating and a $3 price forecast.

The differing assessments reflect both optimism about the ES8 launch and concerns about delivery slowdowns.

Nio’s performance will be closely watched alongside rivals such as Tesla Inc. TSLA and Li Auto Inc. LI.

According to Benzinga Pro, NIO stock has gained over 38% in the past year. Investors can gain exposure to the stock via Invesco Golden Dragon China ETF PGJ.

Price Action: NIO shares are trading higher by 5.42% to $5.83 premarket at last check Friday.

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