NIO Stock Explodes After Slashing Long-Range EV Prices to Challenge Tesla’s New Model Y

NIO just dropped the hammer—and Wall Street's loving it.

Price War Escalation

The Chinese EV maker slashed long-range model prices, throwing down the gauntlet against Tesla's refreshed Model Y. Investors cheered the aggressive move, sending shares soaring as NIO positions itself as the primary challenger in the premium electric segment.

Strategic Gambit

This isn't just about matching Tesla—it's about undercutting the competition while maintaining premium positioning. The market's responding like NIO discovered free money, though let's be real, Wall Street would applaud a company for selling dollar bills at ninety cents if it meant short-term momentum.

Game Theory in Motion

Every price cut forces rivals to recalculate their own strategies. NIO's playing chess while others are still learning checkers—and shareholders are cashing in on every move.

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Effective today, Nio reduced the cost of its 100-kWh long-range battery pack by 20,000 yuan ($2,780), from 128,000 yuan to 108,000 yuan. This led to a lower price of every Nio model equipped with the larger battery, including the ET5, ET7, EC6, and the flagship ET9 sedan.

It must be noted that the ET5 and ET5 Touring saw the steepest cuts, dropping by 5.62% to start at 336,000 yuan. Other models, including the ES6, EC6, ET7, EC7, and ET9, also saw reductions ranging from 2.5% to 5.6%.

Nio Offers Customer Incentives

To ensure fairness for recent buyers, Nio is offering 20,000-yuan vouchers to customers who took delivery of a 100-kWh vehicle between January 1 and August 18. This voucher is also being offered to “battery-as-a-service” (BaaS) customers who bought their long-range battery within the same period.

Also, the permanent upgrade cost from a 75-kWh battery to a 100-kWh battery has been lowered from 58,000 yuan to 38,000 yuan, with a 20,000-yuan voucher for those who have already made the upgrade this year.

Tesla’s Model Y L Triggered This Move

Nio’s price cuts come on the same day Tesla launched its Model Y L. Starting at 339,000 yuan ($46,700), the Model Y L is about 8% more expensive than the standard Model Y and is scheduled for September delivery.

The new Tesla model boasts a larger 82-kWh battery, all-wheel drive, and an estimated 327-mile range. It is designed to appeal to family buyers and directly competes with Nio’s upcoming Onvo L90 SUV.

While Nio aims to defend its position in China with price cuts, the EV maker is also accelerating its international push. Between 2025 and 2026, it plans to enter Singapore, Uzbekistan, and Costa Rica, partnering with local distributors to broaden its reach.

Is Nio a Buy, Sell, or Hold?

Overall, Wall Street has a Hold consensus rating on NIO stock, based on three Buys, seven Holds, and one Sell assigned in the last three months. The average NIO stock price target of $4.62 implies 9.41% downside potential from current levels.