Chinese EV maker Nio (NIO) has cut prices across its long-range vehicle lineup. The move comes in response to Tesla’s (TSLA) launch of its new six-seat Model Y L SUV, ramping up the fight for market share in China’s competitive EV market. Following the news, Nio stock rose 6% on Tuesday, as investors welcomed its price cuts and efforts to compete with Tesla.
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Effective today, Nio reduced the cost of its 100-kWh long-range battery pack by 20,000 yuan ($2,780), from 128,000 yuan to 108,000 yuan. This led to a lower price of every Nio model equipped with the larger battery, including the ET5, ET7, EC6, and the flagship ET9 sedan.
It must be noted that the ET5 and ET5 Touring saw the steepest cuts, dropping by 5.62% to start at 336,000 yuan. Other models, including the ES6, EC6, ET7, EC7, and ET9, also saw reductions ranging from 2.5% to 5.6%.
Nio Offers Customer Incentives
To ensure fairness for recent buyers, Nio is offering 20,000-yuan vouchers to customers who took delivery of a 100-kWh vehicle between January 1 and August 18. This voucher is also being offered to “battery-as-a-service” (BaaS) customers who bought their long-range battery within the same period.
Also, the permanent upgrade cost from a 75-kWh battery to a 100-kWh battery has been lowered from 58,000 yuan to 38,000 yuan, with a 20,000-yuan voucher for those who have already made the upgrade this year.
Tesla’s Model Y L Triggered This Move
Nio’s price cuts come on the same day Tesla launched its Model Y L. Starting at 339,000 yuan ($46,700), the Model Y L is about 8% more expensive than the standard Model Y and is scheduled for September delivery.
The new Tesla model boasts a larger 82-kWh battery, all-wheel drive, and an estimated 327-mile range. It is designed to appeal to family buyers and directly competes with Nio’s upcoming Onvo L90 SUV.
While Nio aims to defend its position in China with price cuts, the EV maker is also accelerating its international push. Between 2025 and 2026, it plans to enter Singapore, Uzbekistan, and Costa Rica, partnering with local distributors to broaden its reach.
Is Nio a Buy, Sell, or Hold?
Overall, Wall Street has a Hold consensus rating on NIO stock, based on three Buys, seven Holds, and one Sell assigned in the last three months. The average NIO stock price target of $4.62 implies 9.41% downside potential from current levels.
