On Wednesday, Nio stock declined after it entered fierce market competition with the debut of its low-priced car, Onvo, which aims to rival Tesla’s Model Y.
In the closed market session, the EV manufacturer’s stock traded in the US plummeted by -8.03% to $5.33 apiece. It later surged by 1.03% to $5.38 per share in the pre-market trading.
Furthermore, analysts have raised their price target to $5.40 from $4.80, underlining the potential benefits of the Chinese government’s stimulus policy and the firm’s innovative battery-as-a-service (BaaS) strategy, which could significantly enhance its market performance.
Simultaneously, Nio unveiled its Onvo L60 sports utility vehicle (SUV), competitively priced at CN¥219,900 ($30,476). This is 12.00% lower than Tesla’s Model Y’s price of CN¥249,900 ($34,626.09) in China, a move that could potentially attract a large customer base.
At a Shanghai event, the company’s CEO, William Li, said the firm also aimed to compete with Toyota Motor’s RAV4 by providing quality family vehicles at fair prices.
Li added that the RAV4 and Model Y were the standards for family cars. Still, as technologies evolve and customers understand smart EVs, they opt to overhaul the new vehicle benchmark.
Meanwhile, reports show that Onvo could also help Nio to branch out outside China. However, the expansion into Europe was overlooked by an ongoing anti-subsidy investigation the bloc has unveiled into EV imports from Beijing.
BaaS Revamped by Nio with Price Cuts to Boost EV Purchase
Nio revealed that it overhauled its BaaS offering with cost reduction, showing a new era in its innovative outlook on EV ownership.
The revamp includes a price cut in the monthly subscription fee. The standard-range battery pack formerly cost CN¥980.00 ($135.75) to CN¥728.00 ($100.84), and the long-range battery pack costs CN¥1,680.00 ($232.71) to CN¥1,128 ($156.25).
Furthermore, users benefit from a CN¥100.00 ($13.85) discount for every payment cycle, which can be used as a voucher when they purchase a new car.
NIO unveils enticing changes with a limited-time deal until May 31. The company offers a pay-for-four, get-one-free subscription deal and 60 free battery swap coupons for BaaS customers, boosting the plan’s value.
