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Is the All-New ES8 Well-Positioned to Boost NIO's Q4 Sales?

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Key Takeaways

  • NIO unveils the redesigned ES8, now its largest all-electric SUV in China, with premium upgrades.
  • The ES8 features a 900V platform, 102 kWh battery and 520 kW dual motors for high performance.
  • NIO targets 25,000 monthly Q4 deliveries and vehicle gross margin above 20% with the new ES8.

NIO Inc. (NIO - Free Report) has officially launched its all-new ES8, a premium flagship three-row SUV, which is now open for pre-orders ahead of its release in late September.

The ES8 will be offered in both six- and seven-seat Executive Premium and Executive Signature trims with starting prices of RMB 416,800 and RMB 456,800, respectively. In Europe, the model will be marketed as the EL8 due to a trademark conflict with Audi. To boost sales, NIO is offering special incentives, such as discounted pre-order deposits and exclusive trade-in benefits for current owners.

The redesigned ES8 has been upgraded from a mid-large to a full-size SUV, making it the largest all-electric SUV available in China. Built on NIO’s 12 full-stack technologies, it reflects the company’s third-generation “Design for Success” philosophy, featuring premium materials, custom interiors and airline-inspired zero-gravity seating.

Performance-wise, the new ES8 is powered by NIO’s advanced 900V high-voltage platform, a 102 kWh battery and dual motors generating 520 kW and 700 N·m of torque. This setup enables 0-100 km/h acceleration in just 3.97 seconds and delivers a CLTC range of up to 635 km.

NIO expects all-new ES8 to drive fourth-quarter monthly deliveries to around 25,000 units, suggesting a rise of 20% year over year from 20,000 units per month in the fourth quarter of 2024. Alongside higher sales, the company also anticipates the model to boost its vehicle gross margin for the NIO brand to over 20% in the fourth quarter. NIO carries a Zacks Rank #3 (Hold) at present. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Comparable Models in the NIO ES8 Segment

Recently, Tesla, Inc. (TSLA - Free Report) introduced the Model Y L in China, a long-wheelbase, six-seat version of its popular SUV, to strengthen its market position following weak second-quarter sales. The “L” refers to its extended wheelbase, which provides extra legroom, along with a six-seat configuration. With a starting price of RMB 339,000, the Model Y L sits above the five-seat versions but comes in under the RMB 400,000 price tag many anticipated. Deliveries are scheduled to start in September.

In late July, Li Auto Inc. (LI - Free Report) launched its Li i8, a six-seat family SUV. Marketed as a next-generation SUV, the Li i8 blends off-road capability, sedan-like handling and MPV-level comfort to redefine family travel. The model is available in three trims: Pro, Max and Ultra at the prices of RMB 321,800, RMB 349,800 and RMB 369,800, respectively.

NIO’s Price Performance, Valuation and Estimates  

NIO has outperformed the Zacks Automotive-Foreign industry year to date. Its shares have gained 27.1% compared with the industry’s growth of 3.7%. 

Zacks Investment Research
Image Source: Zacks Investment Research

 
From a valuation standpoint, NIO appears relatively overvalued. The stock trades at a forward price-to-sales (P/S) ratio of 0.71, above the industry’s 0.45. 

Zacks Investment Research
Image Source: Zacks Investment Research

 
The Zacks Consensus Estimate for 2025 bottom-line loss has widened by a penny in the past 30 days, while for 2026, it has narrowed by 5 cents in the past seven days. 

 

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Image Source: Zacks Investment Research


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