Chinese electric vehicle (EV) maker Nio (NIO) is set to intensify competition with its ET9 and Firefly models. At the annual event held on December 21 in Guangzhou, the company launched its flagship ET9 battery-electric sedan. Nio also unveiled the first model under its second sub-brand Firefly, which targets budget-conscious customers. These new models aim to boost the company’s business amid intense competition and price wars in the EV market.
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More on Nio’s Launches
Nio’s ET9 is priced at RMB 788,000 (RMB 660,000 if the owner opts to rent the battery) and is equipped with the company’s intelligent driving system that is powered by chips developed in-house. The company’s ET9 will compete with Mercedes-Benz Group’s luxury S range and Porsche’s Panamera series. Deliveries for the ET9 sedan, Nio’s highest-priced model to date, will commence in March 2025. Nio touted that 999 units of ET9’s limited edition were already sold out.
Meanwhile, Nio is addressing the needs of budget-conscious customers with its Firefly sub-brand, which will compete with BMW’s Mini and Mercedes-Benz’ Smart models. The first battery electric vehicle (BEV) model under the Firefly sub-brand went on pre-sales at Nio’s annual event at a price starting at RMB 148,800. It will be officially rolled out in China in April 2025.
William Li, founder, chairman, and CEO of Nio, also announced that the first model under the Firefly brand will be launched in Europe in the first half of 2025. The company intends to depend on the outlets of its local partners in Europe to sell the Firefly brand. The CEO added that the Firefly brand’s launch would have been much earlier in the absence of Europe’s additional tariffs. He believes that Firefly is still competitively priced though the extra tariffs in Europe might impact sales.
Deutsche Bank Reacts to Nio’s New Launches
Analysts at Deutsche Bank expect Nio’s ET9 sedan to witness sales of about 1,500 units per month and praised the new model’s “elegant design and advanced technologies.”
However, Deutsche Bank has a “relatively conservative” view of Firefly sales due to its “unique exterior design” and expects the model to see monthly sales of 1,500 units, lower than the company’s estimate of several thousand units.
Is Nio a Buy, Sell, or Hold?
Nio has a Moderate Buy consensus rating on TipRanks, backed by six Buys, four Holds, and two Sells. The average NIO stock price target of $5.99 implies 32% upside potential from current levels. Shares have plunged about 50% year-to-date due to worries over intense competition in the domestic market and profitability concerns.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
