Nio (NIO) Stock Extends Gains as New ES8 Model Sparks Massive Rally
Aug 25 - Nio 
NIO jumped about 7% in premarket trading on Monday after the company unveiled its new ES8 SUV, extending a 14% surge from Friday. The automaker priced the ES8 at 308,800 yuan (roughly $43,000) under a battery-subscription plan that trims upfront cost and lets owners swap or upgrade batteries for a monthly fee. Nio says deliveries start in late September.
Positioned as one of Nio's most affordable seven-seat SUVs, the ES8 sits below the company's typical premium range of 338,000768,000 yuan. That pricing and the flexible battery model aim to widen appeal beyond high-end buyers and make electric ownership easier for value-minded customers. The subscription option also gives Nio recurring revenue potential if uptake proves steady.
Investors reacted to both the price point and the timing: launching ahead of the busy autumn sales season could help Nio capture fleet and family buyers preparing for year-end purchases. Still, profitability will depend on production costs and how many buyers choose the battery subscription versus direct purchase.
At the moment, the market has rewarded the company in embracing their efforts of a cheaper, but service-based EV, but logistics, such as fitting production into it and dealing with lower-margin sales will be the important aspect of turning the interest into regular sales.
Is NIO Stock a Buy?
Based on the one year price targets offered by 24 analysts, the average target price for NIO Inc is $5.10 with a high estimate of $9.01 and a low estimate of $3.00. The average target implies a downside of -19.51% from the current price of $6.34.
Based on GuruFocus estimates, the estimated GF Value for NIO Inc in one year is $12.27, suggesting a upside of +93.53% from the current price of $6.34.