During NIO’s (NIO) first-quarter earnings conference call, its founder and CEO, William Li, announced that the company was delaying the launch of its upcoming electric sedan ET7.
A 50% sequential fall in its car deliveries in the first quarter could have discouraged the company from expanding its product line-up to remain focused on ES8 and ES6 deliveries in the coming few quarters.
Will it be launched in 2020?
While commenting on NIO’s decision to postpone the ET7’s launch, Li said during NIO’s first-quarter earnings call, “It is postponed for the next generation. I believe this is a positive decision for the company, for our investors as well as our users.”
During the call, CFO Louis Hsieh mentioned that the company expects “to launch the third vehicle model in 2020,” which hurt investors’ sentiments. This announcement could be one of the factors that drove NIO stock down nearly 10% on the NYSE on May 29. Hsieh didn’t mention any specific timeline for the launch of NIO’s ET series.
Tesla’s made-in-China Model 3 preorders to start
According to Electrek, NIO’s US rival Tesla (TSLA) is expected to start taking preorders for the made-in-China version of its low-priced sedan Model 3 on May 31. Tesla’s Shanghai-based Gigafactory, which is currently under construction, is expected to start producing these cars for the local market later this year.
Tesla’s aggressive expansion plans in China could be one of the reasons NIO postponed its launch of the ET7.