Core Viewpoint - NIO is accelerating its investment and layout in the pure electric vehicle sector, launching new models ET9 Horizon Special Edition and the new ES8, signaling a shift in market strategy to remain competitive [1][3]. Pricing Strategy - The ET9 Horizon Special Edition is priced starting at 818,000 yuan for full purchase and 710,000 yuan for battery rental, with deliveries starting at the end of September [3]. - The new ES8 has a starting price of 406,800 yuan, reduced by 10,000 yuan from its pre-sale price in August, with deliveries commencing on September 21 [3]. - The pricing strategy aims to address a gap in the 400,000 yuan price range, which has been a challenge for NIO due to previous high pricing [3][4]. Market Trends - NIO's chairman predicts that 2025 will mark a turning point for the pure electric three-row SUV market, as user experience from electric technology begins to outweigh the inconveniences of charging [3][4]. - The company is responding to industry trends by adjusting its product offerings and pricing to better align with market demands [3][5]. Infrastructure Development - NIO has invested heavily in its charging and battery swap network, with a total of 8,246 charging and battery swap stations built across the country, leading the industry [4]. Financial Performance - NIO has completed a financing round of 1.16 billion USD, following a previous 1 billion USD round just a week earlier, indicating a high reliance on external funding due to ongoing losses [4]. - Cumulative losses since the company's inception in 2014 have exceeded 130 billion yuan, with a net loss of 4.995 billion yuan reported in Q2 2025, despite a 9% year-on-year revenue increase to 19 billion yuan [4]. - The revenue guidance for Q3 2025 is projected to reach between 21.81 billion yuan and 22.88 billion yuan, marking a historical high [4]. Competitive Landscape - The electric vehicle market is transitioning from incremental competition to stock competition, intensifying the competitive landscape, especially as government subsidies decline [5][6]. - NIO faces significant pressure to improve its cost-effectiveness and achieve profitability before the market shifts to a more competitive environment [6].

Core Viewpoint - Li Auto's July sales data shows a significant year-on-year decline of 39.7%, indicating pressure on its extended-range series and a need for substantial upgrades to enhance product competitiveness [1] Sales Performance - In July 2023, Li Auto sold 30,731 vehicles, a decrease of 39.7% year-on-year [1] - Cumulative sales from January to July 2023 reached 235,000 units, down 2.2% year-on-year [1] Product Launch and Strategy - The company recently launched its second pure electric model, the i8, with three configurations priced at 321,800, 349,800, and 369,800 yuan [1] - The i8's pricing strategy is conservative, aligning closely with the L8 model, and lacks certain high-demand features that competitors offer [2] - The i8's delivery strategy may affect customer commitment, as there are no additional cash incentives for customers upgrading their orders [3] Competitive Landscape - The i8 faces competition from newly launched models such as the Aito M8 and the Leado L90, which may divert potential customers due to their pricing and features [3] - Despite the competitive pressure, the i8 boasts advantages like dual-motor all-wheel drive and superior battery capacity compared to some competitors [3] Future Outlook - Li Auto has demonstrated strong error correction capabilities, with past models improving significantly after initial underperformance [4] - The upcoming i6 model, set to launch in September 2025, targets a broader market segment and is expected to strengthen Li Auto's position in the 200,000 to 300,000 yuan price range [4] - The company has established a robust charging network with 3,000 supercharging stations across 31 provinces and 258 cities, leading the industry in self-built high-speed charging stations [4] Financial Projections - Adjustments to net profit forecasts for 2025-2027 are made to 7.7 billion, 12.1 billion, and 17 billion yuan, reflecting the anticipated sales pressure on the L series and lower-than-expected market feedback for the i8 [5] - Despite the downward revision in profit forecasts, the company's strong error correction ability and recent valuation adjustments support a "recommended" rating [5]