NIO Cuts Prices to Counter Tesla's New Model Y L in China's Competitive EV Market

NIO has cut prices across its long-range vehicle lineup, effective today, in response to Tesla's launch of its new six-seat Model Y L SUV. The price cuts range from 2.5% to 5.6%, with the ET5 and ET5 Touring seeing the steepest cuts. NIO also offered customer incentives to ensure fairness for recent buyers. The move aims to defend NIO's position in China's competitive EV market.

In a strategic move to bolster its market position in China, NIO has announced significant price reductions across its long-range vehicle lineup, effective today. The cuts, ranging from 2.5% to 5.6%, are a direct response to Tesla's launch of its new six-seat Model Y L SUV [1].

The most substantial price cuts are applied to the ET5 and ET5 Touring models, with the ET5 now starting at 336,000 yuan compared to the previous 356,000 yuan [1]. Other models such as the ES6, EC6, ET7, EC7, EC7 Signature Edition, ET9, and ET9 Signature Edition have also seen reductions, with the ES6, for instance, now priced at 365,000 yuan down from 375,000 yuan [1].

NIO has also introduced customer incentives to ensure fairness for those who have already purchased or ordered vehicles. Customers who ordered a 100-kWh vehicle but have not yet taken delivery will automatically pay the new prices. Those who received delivery between January 1 and August 18 will receive a voucher worth 20,000 yuan, valid for five years towards a future NIO purchase, though it cannot be applied to Onvo or Firefly models [1].

Buyers under NIO's battery-as-a-service (BaaS) plan who bought out their long-range battery during the same period will also receive a 20,000 yuan voucher. The company has also lowered the cost of permanently upgrading from a 75-kWh pack to the 100-kWh version, from 58,000 yuan to 38,000 yuan, with early 2023 upgrades eligible for a 20,000 yuan voucher [1].

Monthly rentals under the BaaS program remain unchanged, with the smaller pack priced at 728 yuan and the long-range version at 1,128 yuan [1].

Tesla's new Model Y L, unveiled the same day, is the longest and first three-row version of its best-selling electric SUV. Starting at 339,000 yuan, or about $46,700, the model is around 8% more expensive than the current shorter Model Y, with deliveries set to begin in September [1]. The car comes with an 82-kWh battery, all-wheel drive, and an estimated 327-mile range [2].

The expanded cabin includes redesigned front seats, second-row captain’s chairs, and power-folding third-row seats, while cargo space reaches nearly 90 cubic feet with rows folded flat. Tesla has also added a larger 16-inch central screen, RGB ambient lighting, a Starlight Gold paint option, and new suspension with continuous damping unique to this version [2].

On Stocktwits, retail sentiment for NIO was 'bearish' with 'low' message volume, while Tesla’s was 'neutral' with similarly 'low' activity [1]. So far this year, NIO has gained 11.7%, while Tesla has fallen 17% [1].

References:
[1] https://stocktwits.com/news-articles/markets/equity/nio-drops-long-range-ev-prices-after-tesla-rolls-out-new-model-y-l-in-china/chsg3FgRdXx
[2] https://opentools.ai/news/meet-the-tesla-model-y-l-the-swanky-six-seater-electric-suv-launching-exclusively-in-china