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Investing.com -- Chinese electric vehicle maker NIO has unveiled a facelift version of its ES8 model that comes with a lower price tag while offering improved features and specifications.
The new ES8 is larger in size and provides extended battery range compared to its predecessor. It features bigger LED displays, 5C/900V charging capabilities, and three LiDAR sensors, up from just one in the previous model. The vehicle also incorporates NIO’s in-house developed NX9031 chip.
The ES8 joins the Onvo L90, which was launched in July, as part of NIO’s strategy to revitalize its product lineup amid intense competition in the high-end six-seater market. The model will compete with other premium offerings including the Li Auto (NASDAQ:LI) i8, AITO M8, and ZEEKR 9X.
Despite its more aggressive pricing strategy, analysts believe the ES8 could maintain high-teens gross profit margins in its initial sales phase. Market observers are watching to see if the lower pricing will help drive monthly sales volumes beyond the peak level of 3,300 units reached in December 2018. In July, the ES8 ranked as the fourth best-selling battery electric vehicle in the premium segment (above 300,000 yuan), behind NIO’s ES6/EC6 models and the AITO M9 EV.
NIO’s stock has gained 49% over the past two months, outperforming the S&P’s 7% increase during the same period, following the successful launch of the Onvo L90.
Morgan Stanley (NYSE:MS) noted that "the new ES8 has the potential to drive further gains" for NIO stock, adding that they await updates on final pricing and order intake at the official launch scheduled for late September.
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