NIO Inc.'s stock is soaring 7.27% in pre-market trading on Friday, building on its strong performance from the previous day. The surge comes as the Chinese electric vehicle maker's sub-brand Onvo officially launched its L90 flagship SUV with highly competitive pricing, positioning it as a potential game-changer for the company.
The Onvo L90, a large SUV targeting the family car market, was unveiled at an event in Hangzhou with a starting price of RMB 265,800 ($36,940), including an 85-kWh battery pack. This price represents a further 5.04% reduction from its already competitive pre-sales price, reflecting NIO's high hopes for the model in achieving its profitability targets. The company aims to reach its first quarterly profit in the fourth quarter of this year, and the L90 is seen as key to this goal.
Investors appear optimistic about the L90's potential to drive significant sales and contribute to NIO's profitability. The aggressive pricing strategy, coupled with the option of a battery-as-a-service (BaaS) rental scheme, positions the L90 as an attractive offering in the competitive electric SUV market. With deliveries of the six-seat version starting immediately and the seven-seat version following in late September, NIO seems poised to capitalize on the growing demand for family-oriented electric vehicles in China.
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