Nio, Inc. (NYSE: NIO) held to its timeline for commencing deliveries of its ET7 sedan, which is the first of the three new vehicles the electric vehicle maker has planned for 2022.
What Happened: Nio confirmed that deliveries of its flagship ET7 sedan began Monday. Representatives from the manufacturing and quality departments handed over the first batch of ET7s to customers at Hefei, the company's China headquarters.
Since test drives started March 5, users in more than 80 cities in China have tried the model. The test-to-order conversion rate was much higher than expected, according to Nio.
The ET7 is Nio's first model based on its second-gen technology platform, NT2.0. It comes with over 100 configurations for comfort, safety and smart technologies. The ET7 is equipped with a new software system for the NT2.0 platform called Banyan.
A subscription service for the company's autonomous driving technology known as NAD will be made available by region starting in the fourth quarter.
Related Link: What Nio's Ark Invest Fund Inclusion Means For The Chinese EV Maker
Why It's Important: The premium positioned ET7 will plug one of the holes Nio had in its product lineup. It is the company's first-ever sedan and will be pitched against Bayerische Motoren Werke AG's (OTC: BMWYY) 5 Series, Volkswagen (DE:VOWG_p) AG's (OTC: VWAGY) Audi A6 and Mercedes-Benz Group AG's (OTC: DMLRY) Mercedes C-Class.
"The mass production of ET7 is well on track. The product itself has led the industry in various aspects including computing power for autonomous driving," Nio founder and CEO William Li said on the company's fourth-quarter earnings call.
The year 2022 is seen as a catalyst-rich one for Nio given the multiple new product launches that are expected from the automaker.
In premarket trading, Nio ADSs listed on the NYSE were seen advancing 2.86% to $20.48.
Related Link: Nio Reports Q4 Beat, Hints At Reacceleration In Growth In 2022
Photo courtesy of Nio.
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