NIO Stock Gains as Nio Unveils New ES7 SUV

  • Nio (NIO) unveiled its ES7 SUV, with prices starting at $59,210.
  • Deliveries are expected to begin on August 28.
  • Shares of NIO stock rose in response, but are still down more than 40% year-to-date.
NIO stock - NIO Stock Gains as Nio Unveils New ES7 SUV

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Shares of Nio (NYSE:NIO) are in the spotlight after the Chinese electric vehicle (EV) company unveiled its ES7 SUV model this morning. The SUV is Nio’s fifth production model and is slated to begin deliveries on Aug. 28. NIO stock is up more than 3% so far this morning.

Prices for the new EV will vary based on battery size and configuration. For the 75 kilowatt-hour (kWh) battery, prices will start at $69,620, while the 100 kWh battery will set you back $78,250. Furthermore, the ES7 Premier Edition will cost $78,550. Finally, if using Nio’s battery-as-a-service option, the ES7 will cost $59,210. All of the prices listed above do not include subsidies.

Shares of NIO stock have declined by more than 40% year-to-date as the company struggles with increased battery costs and the zero-Covid policy in China. The latter has exasperated supply chain challenges as citizens were forced to remain indoors.

Let’s get into the details of the new EV.

NIO Stock: Nio Debuts ES7 SUV

The ES7 will be the first vehicle to utilize Nio’s NT2.0 technology platform. Nio announced in 2021 that it will debut three vehicles this year with NT2.0, so two vehicles are expected to be revealed later in 2022.

The ES7 will also be equipped with Nio Autonomous Driving (NAD). On top of that, the EV will be able to accelerate from zero to 100 km/h in just 3.9 seconds. 100 kilometers is equivalent to 62 miles. High-speed vehicles must also carry efficient braking capacity, and the ES7 will be able to achieve 100 to zero km/h within 33.9 meters.

Using Chinese range testing, the 75 kWh battery model carries a range of 301 miles, while the 100 kWh battery model carries a range of 385 miles. Using the 150 kWh Ultralong Range Battery will provide a range of more than 528 miles.

Battery costs have plagued Nio this year. The company’s vehicle margin clocked in at 18.1% during the first quarter, down 2.8% from the previous quarter. CEO William Bin Li cautioned margins may be further threatened during Q2. On the bright side, Li believes margins will rise during Q3 due to new products, an increase in revenue per vehicle and ramped up production.

On top of that, Li recently announced his company has plans to produce an in-house 800-volt battery pack during the second half of 2024. The new batteries will be used for Nio’s upcoming mass-market models, which are expected to be priced between $30,000 and $45,000.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/06/nio-stock-gains-as-nio-unveils-new-es7-suv/.

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