NIO Starts Delivering its New ES6 Electric Crossover; Shares Up 3%
Chinese electric vehicle maker NIO Inc. (NYSE: NIO) announces today it began delivery of its ES6 electric smaller crossover to the first customers in Beijing, Shanghai, and Guangzhou, sending its shares nearly 3 percent higher on Tuesday, closed at $2.53 apiece.
The ES6 was officially launched on December 15, 2018, at a special event called "NIO Day 2018." The ES6 is a smaller crossover and costs less than the larger seven-passenger ES8 which went on sale last year.
The ES6 has a base price of 358,000 yuan ($51,859) before subsidies, much less than a Tesla Model X in China, which starts around $112,000 for the base version.
The ES6 is a high-performance long-range electric SUV that seats five. It is the second passenger model from NIO and follows the seven-seat ES8 SUV released one year ago. Both models are expected to compete with Tesla in China.
The ES6 is built using high-strength aluminum & carbon fiber reinforced plastics (CFRP) hybrid structure. The ES6 features 0-100 km/h (62 mph) acceleration in 4.7 seconds with an NEDC range of over 510 km (317 miles). The ES6 expands on the design language of the NIO product line with a stylish exterior plus a refined, high-tech interior.
William Li, founder, chairman, and chief executive officer of NIO, said, "The ES6 is NIO's second mass production model, which we launched after the ES8. In less than five years, we have delivered two mass production models to our users, fulfilling our promises. We will continue to work on production, quality control, and increasing user satisfaction."
NIO made headlines last week when one of its electric ES8 SUV's caught fire in Wuhan, China on June 14. It was the third incident of a NIO ES8 catching fire or emitting smoke. NIO said it's investigating the incidents and declined to provide further details.
The recent EV fires could put a dent in China's electric vehicle sales. China's EV car sales volume grew by 2 percent in May, compared to sales growth of 126 percent in May of last year.