Widening Q3 Losses at Nio on Weak Vehicle Margin and Rising Expenses; FVE Lowered to USD 16

Nio is a leading electric vehicle, or EV, manufacturer in China, targeting the premium segment. Its current model portfolio’s retail prices range from CNY 368,000-CNY 634,000, with 450-700 km driving range. For new models, Nio targets starting delivery of the midsize ET5 sedan in third quarter 2022, with an expected price of CNY 328,000-CNY 386,000. It also released the mid-to-large five-seater sport utility vehicle, or SUV, ES7 in June, with delivery also in the third quarter. It also plans to launch a new mass-market brand in 2024 to seize the robust demand while retaining Nio’s premium image.