Key Takeaways:
NIO Inc. (9866.HK) will launch its flagship ES9 SUV in late May, a move that strengthens its position in China's premium electric vehicle market after a record-breaking start to the year for deliveries.
"The ES9 is expected to carry this momentum forward," said a recent analysis from Zacks Investment Research, highlighting the model's 43 industry-first technologies and a confident starting price of 528,000 yuan.
The launch comes after a strong first quarter where NIO delivered 83,465 vehicles, a 98.3 percent increase year-over-year that far outpaced the growth of competitors XPeng and Li Auto. The company's successful third-generation ES8 model, which hit 100,000 deliveries in just 215 days, accounted for over 54 percent of total deliveries in the first quarter.
This focus on high-end models is crucial for NIO's path to profitability. The company's vehicle margins improved to 18.1 percent in the fourth quarter of 2025, up from 13.1 percent a year earlier. With the ES9 and its multi-brand strategy, which includes the Onvo and Firefly brands, NIO is targeting vehicle margins of 20-25 percent for its main brand. The stock has gained over 27 percent year-to-date.
For a long time, the biggest concern around NIO wasn’t demand—it was profitability. That narrative is starting to shift. The company has moved to a more decentralized operating model, improving cost discipline and return on investment. This focus on balanced execution, rather than growth at any cost, is resonating with investors. From a valuation perspective, NIO currently trades at a forward price-to-sales ratio of 0.76, which is below its peers Li Auto and XPeng, suggesting a potentially undervalued stock given its growth trajectory.
The ES9 may be the main attraction, but NIO is executing a broader strategy. The company is showcasing 11 models across its three brands—NIO, Onvo, and Firefly—at the 2026 Beijing Auto Show. This multi-brand approach allows NIO to target different market segments simultaneously. Alongside the ES9, the company is preparing to roll out the Onvo L80 and has refreshed several other models. Furthermore, NIO is aggressively expanding its global footprint, aiming to be present in 40 markets by the end of 2026, doubling its presence from the end of 2025. This, combined with its unique battery swap network of over 3,800 stations, provides a significant competitive advantage.
This article is for informational purposes only and does not constitute investment advice.
