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Will the ONVO L90's Fast Market Entry Boost NIO's Competitive Edge?
ZACKSยท2025-07-23 15:00

Core Insights - NIO Inc.'s sub-brand ONVO is launching the L90 flagship electric SUV, with test drives starting in China and deliveries expected to begin on August 1, 2025 [1][2][10] Product Launch and Features - The L90 will officially launch on July 31, 2025, with pre-sales starting on July 10, 2025 [2] - The starting price for the L90 is RMB 279,900 with an 85-kWh battery, which can be reduced to RMB 193,900 under the Battery-as-a-Service rental option [3] - The L90 includes high-end features such as 900V fast charging, an AR head-up display, adjustable air suspension, a built-in smart refrigerator, and Level 2+ driver assistance systems powered by Nvidia's Orin-X chip [4][10] Competitive Landscape - Li Auto Inc. is set to unveil its electric SUV, the Li i8, on July 29, 2025, with pre-sales starting on July 17, 2025, and a price range of RMB 350,000 to RMB 400,000 [6] - XPeng Inc. launched the G7 at a starting price of RMB 195,800, which is lower than its initial pre-sale price of RMB 235,800 [7] Financial Performance - NIO has outperformed the Zacks Automotive-Domestic industry year-to-date, with shares gaining 14.9% compared to the industry's decline of 7.2% [8] - NIO's price/sales ratio indicates it is trading at a forward sales multiple of 0.66, which is higher than the industry's 0.45, suggesting potential overvaluation [11] Earnings Estimates - The Zacks Consensus Estimate for 2025 EPS has increased by 16 cents in the past 60 days, while the estimate for 2026 EPS has decreased by one cent in the past 30 days [12]