child (NIO) is set for its official launch in Europe, joining a wave of Chinese car brands descending on the world’s second largest electric vehicle market after huge success at home. Nio shares extended losses after tanking on Thursday along with its startup peers li car (LI).
On Friday, Nio is expected to launch its latest and greatest models, including the ET7 and ET5 electric sedans, in Berlin. The event will be streamed live at noon ET on Nio.com and YouTube. Investors will be attentive to prices and delivery time.
Nio has the name of the SUV ES7 to EL7 in Europe, CnEVPost reported on Friday. The move appears to be in response to an earlier lawsuit by Audi, a brand owned by Volkswagen (VWAGY).
About a week ago, the Chinese electric vehicle giant BYD (BYDDF) launched three 100% battery electric vehicles, or BEVs, for Europe. In particular, BYD introduced the affordable Atto 3 compact SUV, seen as a cheaper alternative to the Volkswagen ID.4 and Tesla (TSLA) Model Y. BYD on Tuesday announced a big deal with German car rental giant SIXT, which will buy more than 100,000 BYD electric vehicles, with some Atto 3 deliveries in the fourth quarter.
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’s electric vehicle makers see a huge opportunity in Europe. They also face big challenges like virtually unknown brands going up against famous and beloved western car brands.
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Nio shares lost 5.1% to 14.02 in today’s stock market. They plunged 7.8% on Thursday. Nio shares hit their lowest level since May and remain 68% below their 52-week high.
BYD fell 1.4% on Friday. Tesla shares lost 2.9%. Volkswagen lost 1.9%. Nio’s Starter Companion Xpeng (XPEV) fell 3% to a new record low. LI shares lost 4.1% after falling 12.3% on Thursday to their worst level in nearly five months.
Startups reported last week that sales of electric vehicles in China grew in the third quarter. But product transitions and supply problems hurt delivery volumes, analysts at Deutsche Bank said.
China’s EV makers expand in Europe
Just a few days ago, the Nio co-founders took a 10-day European road trip before the official launch there. On September 28, Nio opened its first battery exchange 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 are 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 also enter.
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