Shares of Chinese electric carmaker Nio have surged following the unveiling of its latest ES8 SUV on 21 August.
The new ES8 is one of Nio’s most affordable SUVs, costing 308,800 yuan (US$43,000) under a battery subscription plan. In comparison, Nio’s premium SUVs normally cost between 338,000 yuan and 786,000 yuan.
The carmakers' subscription plans lower upfront costs while allowing customers to swap or upgrade batteries through a monthly fee.
Following the announcement of the new vehicle, Nio climbed 9.27% to close at US$5.54 on Thursday and rose to 14.44% on Friday to end at US$6.34. Its shares in Hong Kong also increased by 11.12% on Friday.
The new ES8 comes as the Chinese electric vehicle sector faces severe pressure.
Due to competition from automakers offering lower price points, Nio launched two cheaper brands, Onvo and Firefly, to reach a wide customer base.
At the time of writing, Nio (NYSE: NIO) stocks are up 14.44% to US$6.34. The company's market cap is US$13.32 billion.
