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Is the All-New ES8 Well-Positioned to Boost NIO's Q4 Sales?
ZACKS·2025-08-22 15:36

Core Insights - NIO Inc. has launched its all-new ES8, a premium flagship three-row SUV, now available for pre-orders ahead of its late September release [1] Product Details - The ES8 will be available in six- and seven-seat Executive Premium and Executive Signature trims, priced at RMB 416,800 and RMB 456,800 respectively. In Europe, it will be marketed as the EL8 due to a trademark issue with Audi [2] - The redesigned ES8 has been upgraded to a full-size SUV, making it the largest all-electric SUV in China, built on NIO's 12 full-stack technologies, featuring premium materials and airline-inspired zero-gravity seating [3] - The ES8 is powered by a 900V high-voltage platform, a 102 kWh battery, and dual motors generating 520 kW and 700 N·m of torque, enabling 0-100 km/h acceleration in 3.97 seconds and a CLTC range of up to 635 km [4] Sales Expectations - NIO anticipates that the new ES8 will drive monthly deliveries to approximately 25,000 units in Q4, representing a 20% year-over-year increase from 20,000 units per month in Q4 2024. The company also expects the model to enhance its vehicle gross margin to over 20% in the same quarter [5] Competitive Landscape - Tesla has introduced the Model Y L in China, a long-wheelbase, six-seat version of its SUV, priced at RMB 339,000, which is positioned above the five-seat versions but below the anticipated RMB 400,000 price point [6] - Li Auto has launched the Li i8, a six-seat family SUV, available in three trims priced between RMB 321,800 and RMB 369,800, blending off-road capability with sedan-like handling [7] Market Performance - NIO's stock has outperformed the Zacks Automotive-Foreign industry year-to-date, with a share price increase of 27.1% compared to the industry's growth of 3.7% [8] - The stock is currently trading at a forward price-to-sales (P/S) ratio of 0.71, which is above the industry's ratio of 0.45, indicating a relatively overvalued position [11]