Nio Launches $108,000 Electric Vehicle to Rival Porsche and Mercedes, Plans to Double Sales by 2025

Nio Inc., a Chinese electric vehicle (EV) maker, has officially launched its most expensive vehicle to date, the ET9 battery-electric sedan, priced at 788,000 yuan ($108,000). The luxury sedan, designed to compete with high-end models like the Porsche Panamera and Mercedes-Benz S-Class, marks a significant step in Nio's expansion strategy.

Nio's Flagship ET9: Features and Performance

The Nio ET9 boasts an impressive range of features, making it a competitive player in the luxury EV market. The sedan is equipped with a 100 kWh battery that allows it to travel up to 650 kilometers (404 miles) on a single charge. The high-voltage charging system offers a rapid charging capability, providing 225 kilometers of range in just five minutes.

In addition to its impressive range, the ET9 features Nio's advanced intelligent driving system, which is powered by custom-designed chips. The car also comes with 35 speakers, extended legroom, and other luxurious features, providing an exceptional driving experience. Deliveries for the ET9 are set to begin in March.

Nio’s New Sub-Brand: Firefly

Alongside the launch of the ET9, Nio introduced a new sub-brand called Firefly. The Firefly brand is aimed at budget-conscious drivers and will provide more affordable EV options. The first model from Firefly will be priced starting at 148,800 yuan, competing with smaller cars like the BMW Mini and Mercedes Smart.

One notable feature of the Firefly brand is the ability for customers to rent the car’s battery, reducing the initial purchase price. Founder and CEO William Li highlighted the goal of making Nio’s innovative technologies available to a broader audience, with the brand set to expand globally. Firefly's entry into the European market is expected in 2025.

Nio’s Sales Ambitions for 2025

Nio’s founder and CEO, William Li, has set an ambitious target to double annual sales to at least 440,000 vehicles by 2025. In addition to increased shipments of Nio’s main models, the company expects its new sub-brand, Onvo, to reach 20,000 monthly sales. Firefly is expected to contribute several thousand deliveries per month.

Despite its aggressive sales targets, Nio has faced challenges in the past, including failing to meet previous sales goals and continuing to post financial losses. Nio’s shares, which trade in the U.S., have dropped by approximately 50% this year, a steeper decline than its competitors, Xpeng Inc. and Li Auto Inc.

Nio's Challenges in Europe

Nio has also encountered significant obstacles in Europe, including high tariffs imposed by the European Union on electric vehicles from China. The tariffs, as high as 45%, will remain in place for the next five years unless an alternative agreement is reached. These tariffs have had an impact on Nio’s plans to expand in the European market.

Li expressed confidence in the Firefly model but acknowledged that the increased tariffs would affect Nio’s sales volume in Europe. The company plans to work with local partners for sales and service, and while local production in Europe is a possibility, it will depend on whether it becomes financially viable when Nio’s sales volume reaches 100,000 units.

Slow Ramp-Up of Onvo

The slow start of Nio’s Onvo sub-brand has also raised concerns among investors. The brand has only delivered around 10,000 vehicles in its first three months, which Li described as a “reasonable speed” to ensure quality. Nio has also overcome a battery supply bottleneck that had previously impacted production.

Despite missing its operational targets for three consecutive years, Nio remains committed to its goal of achieving profitability by 2026. Li emphasized that profitability in 2026 is a crucial objective for the company and that it cannot afford to miss this target.

Conclusion: Nio’s Future Outlook

Nio's recent product launches and ambitious sales goals reflect the company’s determination to become a leading global player in the electric vehicle market. While challenges remain, particularly in terms of profitability and market expansion, the introduction of the ET9 and Firefly models, alongside Nio's plans for aggressive sales growth, could position the company for future success.