NIO (NIO) launched its much-awaited ES6 car model during its NIO Day 2018 event in Shanghai on December 15. ES6 is a five-seater SUV in contrast to its seven-seater SUV, the ES8. The company claims the ES6 base model will have a range of 410 kilometers (~255 miles), and the high-end variant will have a range of 510 kilometers (~317 miles) in a single charge. Let’s find out what to expect from ES6 pre-orders.
When Tesla (TSLA) unveiled its low priced mass-market electric sedan, the Model 3, in March 2016, it received over 400,000 reservations for the car in less than a month. The success and popularity of Tesla’s previous premium car models including Model S and Model X could be one of the reasons why it received a huge positive response for its cheaper Model 3.
Given that China is the largest automobile market, NIO’s handsome ES6 pre-orders might not seem impressive. However, it’s important to note that by the time Tesla unveiled Model 3, the Tesla brand was already popular among electric car buyers, unlike the relatively new automobile industry entrant NIO.
NIO started taking priority pre-orders for the ES6 on December 1, which was limited to ES8 owners and their friends and required an invitation. The company started taking pre-orders without an invitation on December 15.
NIO is expected to report its fourth-quarter ES8 delivery data in the first few days of January 2019. In its fourth-quarter vehicle deliveries update, investors will also be closely watching for any hint about ES6 pre-orders. The success of the ES6 car model is critical to NIO’s future growth, as the company has already prepared its manufacturing plants at JAC Motors for high volume production of ES6. Lower-than-expected ES6 pre-orders could hurt investors’ sentiments and drive its stock lower.