The market launch of the new ES9 model sends NIO shares on a rollercoaster ride. Concerns about competitive pressure in China are putting pressure on companies.
• NIO volatile due to vehicle launch
• Pricing disappoints investors
• Concern about strong competitive pressure in China
NIO volatile due to ES9 launch
NIO’s NYSE-listed ADR stock had a volatile trading day on Thursday, marked by the highly anticipated unveiling of a new vehicle model. While the shares initially climbed by over 4 percent in early trading thanks to the positive prospects of an increase in sales, the mood changed as the market progressed: the shares ultimately closed with a significant loss of 4.9 percent at $6.07.
After NIO’s shares were already volatile on Thursday, the official presentation of the flagship SUV ES9 on Friday caused disillusionment and a price drop of 5.69 percent to HKD 48.90 on the domestic Hong Kong stock exchange. The main reason for the sell-off was aggressive pricing, which was well below the expectations of analysts and investors, as investing.com reports.
Competitive pressure: Pricing puts pressure
The new six-seat electric SUV, equipped with a state-of-the-art 900-volt architecture and an in-house autonomous driving chip, was positioned at a starting price of 528,000 yuan (approximately US$77,300). Anyone who opts for the battery rental model (BaaS) only pays 420,000 yuan. Since the market had expected an entry price of at least 500,000 yuan, investors viewed the lower valuation as a sign of the extreme competitive pressure in the Chinese premium segment.
Despite the impressive technical data and a range of up to 620 km, concerns about the company’s margins prevailed. According to investing.com, the ES9 will be available in stores from the end of May, with the first deliveries planned for June. While the technical positioning is convincing as the most advanced model in the company’s history, NIO now has to prove that the predatory prices lead to the desired sales boost without endangering profitability in the long term.
Growth course in view
NIO wants to continue its clear growth path with such new models. A look at the balance sheet underlines the potential: with 326,028 electric vehicles delivered in 2025, NIO achieved a sales increase of over 46 percent compared to the previous year. In terms of expansion speed, the company even left the Chinese market leader BYD, which recorded growth of 7.7 percent in the same period, well behind.
Evelyn Schmal, editorial team at finanzen.net
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