TLDR
- Nio cut prices on its long-range battery pack by 20,000 yuan ($2,780) to compete with Tesla’s new Model Y L SUV
- The price cuts led to a 6% stock jump on Tuesday as investors welcomed the competitive move
- Nio is offering 20,000-yuan vouchers to recent customers who bought long-range vehicles between January 1 and August 18
- The company will report Q2 2025 earnings on September 2, with analysts expecting a loss of $0.30 per share
- Wall Street maintains a Hold rating with an average price target of $4.62, implying 9.41% downside potential
Nio stock jumped 6% on Tuesday after the Chinese electric vehicle maker slashed prices across its long-range vehicle lineup. The move came as a direct response to Tesla’s launch of its new six-seat Model Y L SUV in China.
The company reduced the cost of its 100-kWh long-range battery pack by 20,000 yuan ($2,780). The price dropped from 128,000 yuan to 108,000 yuan, effective immediately.
This battery price cut lowered the cost of every Nio model equipped with the larger battery. Models affected include the ET5, ET7, EC6, and the flagship ET9 sedan.
The ET5 and ET5 Touring saw the steepest reductions at 5.62%. These models now start at 336,000 yuan after the price cuts.
Other models including the ES6, EC6, ET7, EC7, and ET9 received price reductions ranging from 2.5% to 5.6%. The cuts apply across Nio’s premium vehicle range.
Customer Compensation and Upgrade Pricing
Nio is offering compensation to recent buyers to maintain customer satisfaction. The company will provide 20,000-yuan vouchers to customers who took delivery of 100-kWh vehicles between January 1 and August 18.
Battery-as-a-service customers who bought their long-range battery during the same period will also receive vouchers. This program aims to ensure fairness for customers who recently purchased at higher prices.
The permanent upgrade cost from a 75-kWh battery to a 100-kWh battery dropped from 58,000 yuan to 38,000 yuan. Customers who already made this upgrade in 2025 will receive 20,000-yuan vouchers as compensation.
Tesla’s Model Y L Sparks Price War
Tesla’s Model Y L launch triggered Nio’s aggressive pricing strategy. The new Tesla model starts at 339,000 yuan ($46,700), about 8% more expensive than the standard Model Y.
BREAKING: Tesla has officially introduced the Model Y L in China.
• Starting price: 339,000 yuan ($47,000 USD)
• Range: 527 miles (CLTC). 327 miles EPA (estimate)
• 4.5s 0-62mph
• 89.6cubic feet of storage
• Deliveries start September 2025 in China pic.twitter.com/xDU9RZkDoZ— Sawyer Merritt (@SawyerMerritt) August 19, 2025
The Model Y L features a larger 82-kWh battery and all-wheel drive system. Tesla estimates the vehicle will deliver a 327-mile range and targets September delivery dates.
The new Tesla model directly competes with Nio’s upcoming Onvo L90 SUV. Both vehicles target family buyers in China’s competitive premium EV market.
Nio plans international expansion between 2025 and 2026. The company will enter Singapore, Uzbekistan, and Costa Rica through partnerships with local distributors.
Earnings and Analyst Outlook
Nio will announce Q2 2025 financial results on September 2, before U.S. markets open. The company will host a conference call at 8:00 AM ET for investors and analysts.
Analysts expect Nio to report a loss of $0.30 per share for the current quarter. This represents an 11.8% improvement compared to the same period last year.
Full-year consensus estimates project a loss of $1.05 per share, marking a 30.5% improvement year over year. Revenue for the current quarter is estimated at $2.76 billion, up 14.8% from last year.
Wall Street maintains a Hold consensus rating on Nio stock based on recent analyst coverage. The rating includes three Buy recommendations, seven Holds, and one Sell from the past three months.
The average price target stands at $4.62, implying 9.41% downside potential from current levels. Analyst price targets range from $3.0 (Barclays) to $8.1 (Citigroup), showing wide disagreement on valuation.
Nio’s stock has returned 1.2% over the past month, slightly trailing the S&P 500 performance. Analysis suggests the stock may be undervalued by approximately 15.9% based on discounted cash flow models.
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