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 ES8 (Source: NIO Global)
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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Chinese EV brand ZEEKR has announced a new design refresh to its flagship 001 EV model – the second in as many years. This latest upgrade to the 001 features ZEEKR’s 900V architecture, enabling better performance and some of the fastest charging speeds we’ve seen. The interior also appears quite cozy, allowing for a starry night setting on the panoramic roof.
If you know anything about the EV brand ZEEKR, you’ve probably heard of the 001 shooting brake EV. The flagship EV initially debuted in April 2021 and found early success in China before expanding its availability to new markets in Europe.
By 2023, the 001 has contributed to 64% of Zeekr’s annual global sales, including a high-performance quad motor variant called the 001 FR that was introduced in 2023. However, ZEEKR began selling a new model called the 007 in January 2024, which immediately overtook the 001 in popularity.
As a result, ZEEKR introduced a 001 refresh in February 2024, which offered customers new, lower-priced trims, plus improved performance. Even after the refresh, ZEEKR’s other models, like the 007 GT (which features newer tech at a lower price), continue to outsell the 001. So, ZEEKR has gone back to its design lab and introduced yet another 001 refresh for 2025, a much bigger overhaul.
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Source: ZEEKR/WeChat
ZEEKR 001 refresh will hit the market on October 11
Although most of China is currently on holiday to celebrate the Mid-Autumn Festival, ZEEKR’s marketing team was hard at work, sharing numerous images, videos, and performance specs of the new 001 refresh on social media channels like Weibo and WeChat.
According to the company, the 2025 001 refresh EVs are already making their way to ZEEKR showrooms around China before the official launch and start of deliveries on October 11. Those pre-order holders will be some of the first to experience the new 001 upgrades, which are centered around ZEEKR’s new E-Powertrain technology – a full-stack 900V architecture.
This is a significant upgrade from the 001’s previous 800V system. The result is significantly faster 12C charging, enabling 10-80% SOC in just seven minutes. Variants include an AWD version that offers 925 hp (680kW), accelerating from 0 to 100 km/h (0 to 62 mph) in 2.83 seconds to a top speed of 280 km/h (174 mph).
ZEEKR is also selling a RWD variant powered by CATL’s Qilin battery technology, offering notable (CLTC) range improvement of up to 810 km (503 miles). This version was equipped with a larger pack (113 kWh) compared to the 100 kWh in the 2024 model, which achieved a CLTC range of 750 km (466 miles).
Source: ZEEKR/Weibo
The 2025 ZEEKR 001 refresh also features plenty of upgrades to the interior. As showcased by the automaker in a video on Weibo, a new interior design theme called “Starry Sky Concert Hall” features premium textiles and an immersive display that can be activated across the EV’s interior roof. As you can see in the video here, stars and constellations twinkle amidst the glow of the moon, while shooting stars occasionally fly across the ceiling.
Other upgrades in the 001 refresh include a new chassis and “CCD Electromagnetic Damping System,” inclusion of ZEEKR’s G-AES (General Obstacle Avoidance) emergency active safety technology, which enables automatic avoidance at speeds up to 130 km/h (81 mph), and all-scenario tire blowout protection which can keep the shooting brake stable at speeds up to 120 km/h (75 mph) after a tire fails.
As mentioned above, the ZEEKR 001 refresh is expected to reach customers in China this weekend; however, there is no word yet on whether or when it will become available in other markets, such as Europe.
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California is taking significant enforcement action against Tesla Insurance, alleging the company has been systematically failing to handle claims properly and harming its customers in the state. The California Department of Insurance announced the action, threatening to revoke Tesla’s license to operate in the state and impose significant fines.
This isn’t the first time we’ve seen Tesla’s insurance arm in hot water, but this action from a major market like California represents a serious escalation.
According to the press release, the California Department of Insurance has issued “Accusations” and “Notices of Orders to Show Cause” against Tesla Insurance Services, Inc., Tesla Insurance Company, and their partner, State National Insurance Company. The Department alleges that these companies have repeatedly failed to comply with California’s claims handling laws, leading to significant harm for policyholders – most of whom are Tesla drivers.
The Department of Insurance laid out some of the core allegations:
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Egregious delays in responding to policyholder claims in all steps of the claims handling process, causing financial harm, out-of-pocket expenses, potential third-party liability exposure, and distress to policyholders.
Unreasonable denials and delays in fully paying valid claims to consumers. Failure to conduct thorough, fair, and objective investigations of claims, thus denying consumers the insurance benefits they expect.
Failure to advise policyholders of their rights to have their claims denials reviewed by the Department – a major consumer protection in California to make sure insurers are held accountable by their regulator.
The state claims that despite numerous warnings and meetings where Tesla and its partners promised to improve, “the number of justified consumer complaints and violations continued to mount.”
The companies now face potential penalties of up to $5,000 for each unlawful, unfair, or deceptive act, or up to $10,000 for each act determined to be willful. Given the Department alleges “hundreds” of mishandled claims, the fines could quickly add up into the millions.
The companies have 15 days to respond to the allegations. If the issues are not resolved, the case will go before an administrative law judge to determine if Tesla can continue to sell insurance in California.
Electrek’s Take
That does sound like Tesla, especially the part where they are ignoring the notices.
This might be more important than it sounds, as insurance is critical to Tesla’s future, particularly if it is to be an autonomous one.
Tesla first started its insurance arm to lower cost to customers and “better account for how its autonomous driver assistance features improve safety.”
However, ultimately, Tesla drivers would find it hard to insure vehicles with level 3-5 autonomous driving technology, and Tesla planned to offer those services whenever it actually achieves these levels of autonomy.
Based on these statements by the California Department of Insurance, it doesn’t sound like Tesla is ready to take on that responsibility.
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Due to Tesla still referring to them as “new, more affordable models”, many people believed that Tesla would still bring to market new, cheaper models.
In fact, the automaker initially stated that it would arrive in the “first half of 2025.”
The new stripped-down Model Y is codenamed E41 and is expected to feature cheaper materials and fewer features than the normal Model Y, which starts at $45,000 in the US.
It is expected to be equipped with more affordable materials, such as a textile interior, and to lose the Model Y’s glass roof, as well as features like the rear screen and more.
Electrek’s Take
The problem with this program is that, rather than launching a brand-new model, it will mostly cannibalize Tesla’s existing Model Y sales.
At best, it will boost Model Y demand by ~10-15% when Tesla’s production capacity is operating at ~60%.
And to achieve that, I think the variant needs to be closer to $35,000 than the $40,000 we have seen in leaks earlier.
If that’s the case, I think it will do the same thing at the Cybertruck RWD that only lasted a few months because people felt they lost too many features for the $10,000 price difference.
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