Nio (NIO) on Friday highlighted a new business model for Europe allowing consumers to subscribe to an electric car rather than buy it outright. Nio stock plunged for a second day along with startup peer Li-Auto (LI).
At an event in Berlin Friday, Chinese EV startup Nio officially launched its EV lineup for the Continent.
Nio showed off its ET7 and ET5 electric sedans during the event. The company announced it will only rent or lease cars in Europe. Monthly subscriptions will start at 999 euros ($975) for the smaller ET5 and 1,199 euros for the ET7. Deliveries will start in Germany and the Netherlands on Oct. 16.
A third model, the EL7 SUV, sold as the ES7 in China, will start at a 1,299 euros monthly rate. The name change for the model, made Friday, follows a marketing dispute with Volkswagen’s Audi brand.
During the event, CEO William Li said the subscription model offers flexibility to customers. Subscriptions can be as short as a month. In China, Nio already allows customers to buy an EV and rent the battery.
China car brands continue to push into Europe, challenging volkswagen (VWAGY), You’re here (TSLA) and other Western auto giants.
About a week ago, Chinese EV giant BYD (BYDDF) launched three 100% battery electric vehicles, or BEVs, for Europe. Notably, BYD unveiled the affordable Atto 3 compact SUV, seen as a cheaper alternative to the VW ID.4 and Tesla Model Y. BYD on Tuesday announced a big deal with German car rental giant SIXT, which will buy more than 100,000 BYD EVs, with some Atto 3 deliveries in Q4.
Nio’s ET5, its most affordable EV yet, is seen as a Model 3 rival. The ES7 is seen as a Model Y competitor.
China EV makers see huge opportunity in Europe. They also face big challenges, as virtually unknown brands taking on famous and beloved Western car brands.
Take Our Anonymous Survey And Tell Us What You Like (And Don’t Like)
About Your Online Broker.
Ten Participants Will Win A $50 Amazon Gift Card.
US-listed shares of Nio lost 6.8% to 13.77 on the stock market today. They dive 7.8% Thursday. Nio stock hit its lowest level since May and remains 68% below its 52-week high.
BYD gave up 3.4% Friday. Tesla stock lost 6.3%. Volkswagen shed 3.7%. Nio start-up peer Xpeng (XPEV) retreated 6.2% to a fresh record low. LI stock lost 6.6% after plunging 12.3% Thursday to its worst level in nearly five months.
Dual-listed shares of Nio, Xpeng and Li tumbled in Hong Kong Friday. Investors there are worried about the demand outlook for China EV makers as global growth slows, Bloomberg said.
China EV Makers Expand In Europe
Just days ago, Nio’s co-founders made a 10-day European road trip ahead of the official launch there. On Sept. 28, Nio opened its first battery swap station in Germany, home to Volkswagen, BMW (BMWYY) and Mercedes Benz (DDAIF).
Friday’s launch event marks the culmination of intense planning. Nio announced its European expansion last year.
Both BYD and Nio have used Norway as a pilot market so far. They’re now launching in Germany, Denmark, Sweden and the Netherlands. The UK and other countries will follow.
By 2025, Nio aims to be in 25 countries.
Xpeng is already in Europe. Li Auto could enter as well.
YOU MAY ALSO LIKE:
Tesla Stock Vs. BYD Stock
These Are The 5 Best Stocks To Buy And Watch Now
Stocks To Watch: Top-Rated IPOs, Big Caps And Growth Stocks
Find The Latest Stocks Hitting Buy Zones With MarketSmith
Rally Attempt Reeling After Friday’s Plunge; What To Do Now