Nio’s Stock Rises 30% As More Affordable Electric Vehicles Introduced

The stock of Chinese electric vehicle (EV) maker Nio (NIO) is surging after the company unveiled more affordable models that are likely to appeal to consumers and drive future sales.

Nio’s stock that trades in New York is up 5% in premarket action on Aug. 25 after a 14% gain on Aug. 22. In the last five trading sessions, the company’s share price has risen nearly 30%.

The rally comes after Nio unveiled its latest electric vehicle, the ES8 SUV, on Aug. 21. The model is priced at the equivalent of $43,000 U.S., making it a more affordable option for people.

Additionally, Nio’s monthly subscription plan allows vehicle owners to swap out depleted batteries for fresh ones, eliminating the need for a home charging system and lowering upfront costs.

Deliveries of the more affordable ES8 SUV are set to begin this September and are expected to give the company’s sales a boost heading into year end.

Nio’s more affordable electric vehicles are being introduced at a time of rising competition and pressure in China’s electric vehicle sector.

Until now, Nio has targeted the high-end vehicle market but is facing growing pressure from competitors that are rolling out electric vehicles with lower prices.

Nio recently launched two cheaper brands, Onvo, which targets the mass market, and Firefly, which caters to young urban consumers, in an effort to further drive sales.

NIO stock is now up 39% on the year and trading at $6.34 U.S. per share on the New York Stock Exchange (NYSE).