Pre-orders for Nio’s new ES8 SUV may have already exceeded 30,000 units, according to Morgan Stanley, fuelling optimism that the company could replicate the success of the L90 model launched last month under the Onvo sub-brand.
In a research note released on Monday and obtained by PriceTarget, analyst Tim Hsiao wrote that the firm’s checks suggested pre-orders “may have surpassed 30,000” by the weekend and were continuing to climb.
With the previous model launch — the six/seven-seat SUV L90 — the bank estimated in early July that Onvo’s L90 SUV had secured between 30,000 and 35,000 pre-orders within its first four days on sale.
Nio’s US-listed shares surged to reach Morgan Stanley’s $6.50 price target on Monday’s pre-market trading session.
But Hsiao cautioned that while the pre-order volumes looked “robust,” “real demand still hinges on order conversion.”
“Constructive feedback underpins the market’s belief that ES8 could go viral as L90 did last month, underpinning a monthly run rate of 40,000-50,000 units for Nio Group from October,” Hsiao added.
Nio’s management has guided in June for monthly deliveries of “about 25,000” vehicles under the Nio brand in the final quarter, or 75,000 in total.
Chief executive William Li has said Onvo is targeting the same level, suggesting a group-wide fourth-quarter goal of around 150,000 units, excluding the entry-level Firefly brand, which has no public target.
The management is expected to update the vehicle delivery targets on September 2, when it reports its second quarter earnings results.
The bullish projections follow comments last Friday from Nio co-founder and president Lihong Qin, who said ES8 pre-orders had already exceeded those of the Onvo L90 within about 12 hours of the model’s unveiling.
The ES8 Executive Premium Edition, available in six- and seven-seat versions, starts at 416,800 yuan ($58,030) with a 102-kWh battery pack, or 308,800 yuan under Nio’s Battery-as-a-Service plan.
The Onvo L90, launched in July, entered pre-sales at 279,900 yuan ($39,000) with an 85-kWh pack.
Nio has also rolled out launch offers for ES8 buyers.
Customers placing an order between August 21 and the official launch can apply a 5,000 yuan deposit as a 10,000 yuan discount.
Existing Nio owners are eligible for additional vouchers and bonus points, with the most generous package offered to original ES8 Founders’ Edition buyers.
As of press time, US-listed shares of Nio are trading 5.30% higher at $6.68 during Monday’s pre-market session.
