NIO’s (NIO) new low-cost electric SUV paves the way for a ‘brand revival’ analyst claims
NIO’s (NIO) new Onvo L60, starting at just $21,200, paves the way for a “brand revival,” according to Deutsche Bank analyst Wang Bin’s team. The new low-cost electric SUV is crucial as NIO takes aim at market leaders like Tesla and BYD.
NIO’s new low-cost electric SUV shines in debut
On Thursday, NIO launched the Onvo L60, officially kicking off its new mass-market brand. The electric SUV is considered a true challenger to Tesla’s top-selling Model Y.
The L60 starts at just 149,900 yuan, or around $21,200, for the battery rental model, which includes a monthly subscription fee.
For those who choose the battery subscription model, rentals are $85 (599 yuan) for the 60 kWh and $125 (899 yuan) for the 85 kWh battery per month.
With the battery pack included, NIO’s new electric SUV starts at $26,300 (206,900 yuan), still cheaper than the Model Y, which starts at $34,600 (249,900 yuan) in China. After a successful launch, the Onvo L60 has already garnered the attention of analysts.
“We believe the Onvo L60 SUV’s success paves the way for a Nio brand revival,” Wang’s team wrote in a note to investors on Friday.
NIO’s L60 is the first EV based on its new NT 3.0 platform, offering higher performance at a lower cost.
The note added that the (NT 3.0) tech platform will underpin all new Onvo models, unlocking future savings with a cost-competitive supply chain.
Setting the new standard
NIO’s new low-cost electric SUV and NT 3.0 platform enable a path for long-term vehicle gross margin improvement. Wang’s team said “25% for the NIO brand and 15% for the Onvo brand” as guidance.
The Onvo L60 (4,828 mm long x 1,930 mm wide x 1,616 mm tall) is slightly bigger than Tesla’s Model Y (4,750 mm long x 1,921 mm wide x 1,624 mm tall), but its longer wheelbase (2,950 mm vs. 2,890 mm) provides more interior space.
NIO claims the L60 sets the “new standard for family cars” as a long-range, highly efficient electric SUV at a competitive price.
According to NIO, the L60 has “industry-leading ultra-low CLTC energy consumption of 12.1kWh/100km,” better than the Model Y at 12.5 kWh/100km.
The interior features a Model Y-like design, with the 17.3″ infotainment screen at the center of an otherwise minimalistic interior. Rear passengers also get an 8″ entertainment screen.
Wang’s team said NIO’s new electric SUV offers a better exterior design, more interior space, at a lower cost.
| NIO Onvo L60 vs Tesla Model Y trims | Range (CLTC) |
Starting Price |
| NIO Onvo L60 (Battery rental) | 555 km (341 mi) 730 km (454 mi) |
149,900 yuan ($21,200) |
| NIO Onvo L60 (60 kWh) | 555 km (341 mi) | 206,900 yuan ($29,300) |
| NIO Onvo L60 (85 kWh) | 730 km (454 mi) | 235,900 yuan ($33,400) |
| NIO Onvo L60 (150 kWh) | +1,000 km (+621 mi) | TBD |
| Tesla Model Y RWD | 554 km (344 mi) | 249,900 yuan ($34,600) |
| Tesla Model Y AWD Long Range | 688 km (427 mi) | 290,900 yuan ($40,300) |
| Tesla Model Y AWD Performance | 615 km (382 mi) | 354,900 yuan ($49,100) |
Initial dealer feedback has been “very strong,” according to the note. As a result, Wang’s team increased its monthly delivery guidance to 10,000 from 8,000.
With 20,176 vehicles delivered last month, NIO has now crossed the 20K sales mark for four months.
NIO’s stock is up 32% over the past month as momentum picks up. However, NIO shares are still down 36% in 2024 and 39% over the past 12 months.
Source: CnEVPost
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Despite its small size, Volvo’s cheapest EV continued its dominant run last month in Europe. The Volvo EX30 was Europe’s second-best-selling EV, behind only the Tesla Model Y, as sales continued surging.
Volvo EX30 sales continue surging in Europe in August
According to new data from the European Automobile Manufacturers’ Association (ACEA), EV registration in the EU fell by 43.9% in August as the two biggest markets, Germany (-68.8%) and France (-33.1%), saw significant declines.
Despite this, Volvo was one of the bright spots, as overall vehicle sales climbed 36%. With 19,605 vehicles sold last month, Volvo topped Tesla and Fiat to become the fourteenth largest automaker in the EU, UK, and EFTA countries, according to Dataforce.
Volvo’s growth was largely thanks to the new EX30, which added 6,377 in sales to its total. The growth was enough to become Europe’s second best-selling EV, behind only Tesla’s Model Y.
The accomplishment is significant, given Volvo handed over the first EX30 models last December.
Volvo’s global sales rose 3% in August, with 52,944 cars sold. The EX30 was its fourth top-selling vehicle, with 8,346 units sold, behind the XC60 (14,723) and XC40/EX40, which had 10,668 combined sales.
Starting at around 36,000 euros ($40,000), the EX30 is one of Europe’s most affordable EVs. Although due to hit the market later than expected, the EX30 is scheduled to launch in the US next year, starting at $34,950.
The delay comes as the US announced a new 100% tariff on EVs imported from China, where the EX30 is currently built.
Volvo is fast-tracking production at its Ghent, Belgium plant to export EX30 models to the US, enabling it to bypass the additional tariffs.
Electrek’s Take
Will the Volvo EX30 have the same impact in the US? Starting at under $35,000, the small electric SUV will not only be one of the cheapest EVs in the US but also one of the most affordable vehicles (gas-powered or EV) on the market.
According to the latest data from Kelley Blue Book, the average transaction price (ATP) for a new vehicle in the US was $47,870 in August.
Volvo is also launching its flagship electric seven-seater, the EX90 (check out our review of the luxury 7-seat kid-hauler).
Although Volvo’s sales in the US and Canada were down 0.2% through the first eight months, Volvo expects new EVs in key segments to quickly recharge sales.
Source: Automotive News
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Chicago-based NanoGraf will build a $175 million factory to produce 2,500 tons of silicon anode material to support up to 1.5 million EVs per year.
NanoGraf’s new factory
The US Department of Energy (DOE) has awarded $60 million to the silicon anode battery company to help build its factory under the Bipartisan Infrastructure Law.
NanoGraf’s project is one of 25 selected across 14 states to receive a portion of the over $3 billion in grants that the DOE announced today. These grants aim to strengthen domestic production of advanced batteries and battery materials in the US.
NanoGraf will use the grant, in addition to its own capital, to retrofit an existing factory in Flint, Michigan. It will be one of the world’s largest silicon anode facilities, significantly boosting US efforts to onshore the battery supply chain. The company says its advanced silicon anode battery material enables stronger, lighter, and longer-lasting lithium-ion batteries.
The Flint factory is NanoGraf’s third battery material factory and increases the company’s total manufacturing footprint to over 414,000 square feet. NanoGraf currently produces silicon anode material for the US military out of two Chicago-based manufacturing facilities, including a new R&D facility at 455 N Ashland Avenue and its headquarters at 400 N Noble Street.
The project will create approximately 200 construction jobs through a project labor agreement with the North American Building Trades Union. Up to 150 new permanent jobs will be created for operations, and around 80% are expected to come directly from the local community.
NanoGraf has signed a neutrality agreement with the United Steelworkers and says it’s committed to partnering with them should a majority of employees wish to unionize.
Electrek’s Take
In November 2022, Connor Hund, chief operating officer at NanoGraf, and I discussed a $10 million Department of Defense contract that the company had secured.
Hund told me that the company’s 18-month contract with the DoD allowed it to scale up domestic production in a careful and deliberate way so that it could lay the groundwork for the next stage of supplying domestically produced batteries to the EV market by 2024.
NanoGraf doesn’t say when it intends to open the Flint factory, but it’s certainly moving toward the next-stage goal that it set in a timely fashion. A huge domestically made lithium-ion battery factory is a welcome thing.
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