Chinese EV leader NIO (NIO) reported 10,059 deliveries of its electric models in October 2022. Although NIO’s deliveries are up over 174% from October last year, it’s a slight dip from last month. A sign of what’s to come in the Chinese EV market? Or just another speed bump on the way to rapid EV adoption?
A critical year for NIO (NIO)
Since going public in 2018, NIO has been one of the most closely watched EV companies, partly because of the company’s explosive growth and market potential in China.
In December 2017, the company launched the ES8, a premium electric SUV, which was followed by the ES6, an EV SUV, in December 2018. The EC6, an electric coupe SUV, was unveiled in December 2019. In January 2021, NIO released its flagship ET7 electric sedan, and in December 2021, the ET5 was introduced, a midsize electric sedan.
NIO delivered 91,429 electric vehicles in 2021, including 20,050 ES8s, 41,474 ES6s, and 29,905 EC6s.
However, 2022 has presented significant challenges for Chinese EV companies with ongoing lockdowns due to a resurging COVID-19 that continues to limit production.
According to the latest update from the International Council on Clean Transportation, China remains the top market for electric vehicles despite surging EV sales in Europe, with around 24% EV share of the auto market.
Several automakers and startups, such as Li Auto, Xpeng, and Geely, are fighting NIO for market share. During the second quarter, NIO’s deliveries rose 14% YOY, but the pace is slowing significantly, falling 2.8% from Q1.
The EV maker’s founder and CEO, William Bin Li, called the remainder of 2022 a “critical period” for NIO to scale production and expand its market.
NIO’s stock is down 70% year-to-date (YTD) as inflation, geopolitical tension, and regulation uncertainty has put pressure on Chinese stocks, particularly growth and tech companies.
NIO’s October EV deliveries update indicates better-than-expected results, but the slowing momentum raises questions.
NIO October 2022 EV deliveries update
According to NIO’s SEC filing, the EV company delivered 10,059 electric models in October 2022. Even though NIO’s EV deliveries represent an increase of 174.3% from October of last year, they are down 7.5% from September.
During October, NIO delivered 5,979 electric SUVs and 4,080 electric sedans, including:
2,814 ES7
3,050 ET7
1,030 ET5
Including October, Nio has delivered 92,493 so far in 2022, up 32% from the same time last year. Cumulative deliveries have now reached 259,563 as of October 31, 2022.
NIO notes:
The vehicle production and delivery were constrained by operation challenges in our plants as well as supply chain volatilities due to the COVID-19 situations in certain regions in China.
To help overcome this, NIO introduced its ET7, EL7, and ET5 models in Europe to expand its market reach. The EV models will “gradually” become available in Norway, Germany, the Netherlands, Denmark, and Sweden through NIO subscriptions, leasing programs, and DTC sales.
Electrek’s Take
Although NIO’s EV deliveries seem to be slowing, the EV maker is strategically growing its market by introducing several popular electric models in Europe, where demand is also rising quickly.
NIO delivered more EVs than rival XPeng (5,101) and just edged out Li Auto (10,052) in October. The EV maker continues to overcome supply chain hurdles in its home market, but the company’s widening loss is a concern.
In Q2, NIO’s loss grew to $411.7 million, an increase of 369% from 2021. NIO reports Q3 earnings on November 10. This will be a significant number to watch.
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Wind energy powered 20% of all electricity consumed in Europe (19% in the EU) in 2024, and the EU has set a goal to grow this share to 34% by 2030 and more than 50% by 2050.
To stay on track, the EU needs to install 30 GW of new wind farms annually, but it only managed 13 GW in 2024 – 11.4 GW onshore and 1.4 GW offshore. This is what’s holding the EU back from achieving its wind growth goals.
Three big problems holding Europe’s wind power back
Europe’s wind power growth is stalling for three key reasons:
Permitting delays. Many governments haven’t implemented the EU’s new permitting rules, making it harder for projects to move forward.
Grid connection bottlenecks. Over 500 GW(!) of potential wind capacity is stuck in grid connection queues.
Slow electrification. Europe’s economy isn’t electrifying fast enough to drive demand for more renewable energy.
Brussels-based trade association WindEurope CEO Giles Dickson summed it up: “The EU must urgently tackle all three problems. More wind means cheaper power, which means increased competitiveness.”
Permitting: Germany sets the standard
Permitting remains a massive roadblock, despite new EU rules aimed at streamlining the process. In fact, the situation worsened in 2024 in many countries. The bright spot? Germany. By embracing the EU’s permitting rules — with measures like binding deadlines and treating wind energy as a public interest priority — Germany approved a record 15 GW of new onshore wind in 2024. That’s seven times more than five years ago.
If other governments follow Germany’s lead, Europe could unlock the full potential of wind energy and bolster energy security.
Grid connections: a growing crisis
Access to the electricity grid is now the biggest obstacle to deploying wind energy. And it’s not just about long queues — Europe’s grid infrastructure isn’t expanding fast enough to keep up with demand. A glaring example is Germany’s 900-megawatt (MW) Borkum Riffgrund 3 offshore wind farm. The turbines are ready to go, but the grid connection won’t be in place until 2026.
This issue isn’t isolated. Governments need to accelerate grid expansion if they’re serious about meeting renewable energy targets.
Electrification: falling behind
Wind energy’s growth is also tied to how quickly Europe electrifies its economy. Right now, electricity accounts for just 23% of the EU’s total energy consumption. That needs to jump to 61% by 2050 to align with climate goals. However, electrification efforts in key sectors like transportation, heating, and industry are moving too slowly.
European Commission president Ursula von der Leyen has tasked Energy Commissioner Dan Jørgensen with crafting an Electrification Action Plan. That can’t come soon enough.
More wind farms awarded, but challenges persist
On a positive note, governments across Europe awarded a record 37 GW of new wind capacity (29 GW in the EU) in 2024. But without faster permitting, better grid connections, and increased electrification, these awards won’t translate into the clean energy-producing wind farms Europe desperately needs.
Investments and corporate interest
Investments in wind energy totaled €31 billion in 2024, financing 19 GW of new capacity. While onshore wind investments remained strong at €24 billion, offshore wind funding saw a dip. Final investment decisions for offshore projects remain challenging due to slow permitting and grid delays.
Corporate consumers continue to show strong interest in wind energy. Half of all electricity contracted under Power Purchase Agreements (PPAs) in 2024 was wind. Dedicated wind PPAs were 4 GW out of a total of 12 GW of renewable PPAs.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the official unveiling of the new Tesla Model Y, Mazda 6e, Aptera solar car production-intent, and more.
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The Chinese EV leader is launching a new flagship electric sedan. BYD’s new Han L EV leaked in China on Friday, revealing a potential Tesla Model S Plaid challenger.
What we know about the BYD Han L EV so far
We knew it was coming soon after BYD teased the Han L on social media a few days ago. Now, we are learning more about what to expect.
BYD’s new electric sedan appeared in China’s latest Ministry of Industry and Information Tech (MIIT) filing, a catalog of new vehicles that will soon be sold.
The filing revealed four versions, including two EV and two PHEV models. The Han L EV will be available in single- and dual-motor configurations. With a peak power of 580 kW (777 hp), the single-motor model packs more power than expected.
BYD’s dual-motor Han L gains an additional 230 kW (308 hp) front-mounted motor. As CnEVPost pointed out, the vehicle’s back has a “2.7S” badge, which suggests a 0 to 100 km/h (0 to 62 mph) sprint time of just 2.7 seconds.
To put that into perspective, the Tesla Model S Plaid can accelerate from 0 to 100 km in 2.1 seconds. In China, the Model S Plaid starts at RBM 814,900, or over $110,000. Speaking of Tesla, the EV leader just unveiled its highly anticipated Model Y “Juniper” refresh in China on Thursday. It starts at RMB 263,500 ($36,000).
BYD already sells the Han EV in China, starting at around RMB 200,000. However, the single front motor, with a peak power of 180 kW, is much less potent than the “L” model. The Han EV can accelerate from 0 to 100 km/h in 7.9 seconds.
At 5,050 mm long, 1,960 mm wide, and 1,505 mm tall with a wheelbase of 2,970 mm, BYD’s new Han L is roughly the size of the Model Y (4,970 mm long, 1,964 mm wide, 1,445 mm tall, wheelbase of 2,960 mm).
Other than that it will use a lithium iron phosphate (LFP) pack from BYD’s FinDreams unit, no other battery specs were revealed. Check back soon for the full rundown.