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Shares of Chinese electric vehicle maker Nio gained for the second straight day in Hong Kong after analysts forecast the carmaker’s fifth and the most affordable model, the ET5, will become a hit.
The shares gained as much as 4% to HK$175 at one point before closing 2.7% up at HK$172.8, after surging more than 16% one day earlier. The shares have gained 8% since they started trading in March.
The ET5, the mid-sized electric sedan, priced cheaper than Nio’s other models particularly due to the firm’s battery rental program, will lead the company into a new product lifecycle that may help it obtain a bigger market share in the entry-level luxury market, analysts said.
Citic Securities wrote in a note that it’s optimistic about the ET5 becoming a hit, giving credence to social media rumors. Nio is expected to turn its losses into a profit as early as in the fourth quarter of 2023, the note added.
The ET5, launched last December, costs from 328,000 yuan to 386,000 yuan ($47,134 – $55,469), and if buyers choose to rent the battery, prices fall to around 258,000 yuan, a more than 30% cut.
The first RT5s will be delivered on Sept. 30, based on its plan. Nio is expected to deliver more than 10,000 ET5 vehicles in December, Chief Executive Li Bin had said earlier.
