Chinese electric vehicle maker Nio saw its U.S.-listed shares jump 9.3% and Hong Kong shares rise 10% after introducing its most competitively priced model yet- the new ES8 SUV starting at 308,800 yuan ($43,000).

The aggressive pricing, part of Nio’s battery subscription program, reduces upfront costs while allowing battery upgrades via monthly payments, with deliveries beginning in late September.

The launch reflects intensifying competition in China’s EV market, where Nio has traditionally focused on premium segments but now expands into mass-market offerings through its Onvo and Firefly sub-brands.

Morningstar analyst Vincent Sun attributed the stock surge to expectations of strong orders for the ES8 and recently launched Onvo L90, noting the model’s “very competitive” positioning within the premium SUV segment.

Nio’s move comes amid a broader industry slowdown, with the company reporting decreased July deliveries (21,017 units vs. 24,925 in June) despite overall market growth from rivals like Xpeng and Xiaomi.

Domestic pressure and rising export tariffs have accelerated Chinese EV makers’ global expansion plans, including Nio’s upcoming entry into Singapore—its first Southeast Asian market—with a right-hand-drive Firefly model.

The ES8 undercuts typical premium SUV prices (338,000–768,000 yuan), though Nio’s ET5T remains its cheapest model at 298,000 yuan.

The strategy aims to broaden Nio’s appeal beyond luxury buyers while leveraging its battery-swap infrastructure to differentiate from competitors.

Investors responded positively to the pricing tactic, viewing it as a potential catalyst for reversing recent delivery declines amid China’s fierce EV price war.

Source: CNBC