Among Li Bin, Li Xiang and Elon Musk, who can "survive"?
Before the new car is officially on sale, NIO and Li Auto, two old rivals, are already at loggerheads.
On the evening of August 21st, NIO held a product and technology launch event for the new ES8 in Chengdu. This is a six - seater, three - row all - electric SUV. The pre - sale price for purchasing the whole vehicle starts at 416,800 yuan, and the price for the Bass battery rental plan starts at 308,800 yuan. Compared with the previous model, the starting price of the new ES8 has been reduced by 81,200 yuan.
Considering that the actual selling price of a new car is usually lower than the pre - sale price, the starting price of this new car may even drop to the 300,000 - yuan range.
At the media communication meeting on the morning of the 22nd, Li Bin, the CEO of NIO, said that the second - generation ES8 launched by the company in 2023 made some mistakes, and there were problems with the cost target setting. "The mission of the new ES8 when it was planned was to correct such mistakes and return it to its proper position."
Li Bin believes that if NIO continues to maintain high prices, it will be difficult to participate in market competition. At the same time, the cost of the new ES8 is much lower than that of the previous two generations of models, and there is still a gross profit margin.
However, the relatively low pre - sale price of the new ES8 may "stab in the back" the old car owners who bought the previous generation of models at a high price. Li Bin said in response that some old car owners' feedback was that "the most important thing is for NIO to survive" so that the previously promised benefits can be guaranteed.
As usual, NIO did not disclose the order volume of the new ES8. However, Qin Lihong, the president of NIO, said that from the end of the launch event the previous night to the next morning, within the same time period, the order volume of the new ES8 was higher than that of the LeDao flagship model L90 launched at the end of last month.
As the flagship model in NIO's SUV lineup, NIO has high hopes for this new car. Whether the significantly price - cut new ES8 can become an instant hit not only relates to whether NIO can achieve its goal of making a profit in the fourth quarter of this year but also affects the company's long - term combat ability.
Qin Lihong also said, "Every year is important, and every day is a battle for survival."
An interesting detail is that at the arrival gate of Chengdu Shuangliu Airport, the advertisement behind NIO's media pick - up staff was not for NIO or LeDao, but for the Li Auto i8, accompanied by the promotional slogan "Ordering and test - driving have begun."
Source: Zimubang
Similar to the NIO ES8, the Li Auto i8 is also a pure - electric, three - row, six - seater SUV targeting high - end family users and began deliveries on August 20th. It's not hard to see that in the face of a strong rival on the verge of a fight, Li Auto hopes to seize the opportunity to gain more presence in front of the media and car enthusiasts across the country.
The rivalry between the two automakers started even before the launch of the new ES8.
In July this year, it was both the new car promotion period for the Li Auto i8 and the launch period for the LeDao three - row SUV L90. Although Li Bin publicly stated that "as long as you choose pure - electric vehicles, we are teammates" and wished the Li Auto i8 great success, the two automakers were at odds with each other. When one held a technology launch event, the other released spy photos of the interior. When one promoted large space, the other advertised the "Black Warrior" style. The off - site PK has never really stopped.
For a long time, Li Auto and NIO have not really clashed head - on in the market. Li Auto focuses on range - extended and family SUVs, while NIO focuses on high - end pure - electric vehicles and battery - swapping technology. They are like two parallel lines, developing independently.
Now, Li Auto's first pure - electric SUV has encountered two flagships from NIO and LeDao head - on. And the entry of Tesla has made the competition in the six - seater pure - electric SUV market even more intense.
On August 19th, Tesla launched the six - seater SUV model Model Y L in China with a starting price of 339,000 yuan. Compared with the five - seater Model Y, the new car's body is 179mm longer, the wheelbase is increased by 150mm to 3040mm, and the vehicle height is 1668mm.
Tesla's previous six - seater SUV was the Model X, which was priced close to one million yuan. Now, Tesla has "lowered" the six - seater configuration to the volume - selling model Model Y, hoping to get a share of this hot niche market.
Chinese consumers have always favored large cars, especially SUVs with long wheelbases and large spaces. In the past, six - seater SUVs from various brands were concentrated in mid - to high - end models with a relatively small audience. Now, the entry of Li Auto, NIO, and Tesla has further lowered the threshold for six - seater SUVs, and the entire market may be further expanded.
The battle situation in the three - row SUV market, which was originally relatively calm, has become much more intense. For the three major automakers, this is a battle they cannot afford to lose.
01
In the past two months, both Li Auto and NIO have set their sights on the niche market of six - seater, three - row pure - electric SUVs. Li Auto has launched its first pure - electric SUV, the i8, while NIO has formed a high - low combination with the LeDao L90 and the new NIO ES8.
Behind the efforts of the two automakers in the pure - electric three - row SUV market is the challenge they both face of not only increasing revenue but also increasing profits.
For Li Auto, 2024 was a year of extremes: the cumulative annual delivery volume exceeded 500,000 vehicles, making it the first new - energy brand to achieve this goal. However, at the same time, Li Auto's profitability declined.
In 2023, Li Auto achieved a net profit of 1.181 billion yuan. In 2024, the annual net profit shrank to 800 million yuan. In terms of gross profit margin, it was 23.5% in the fourth quarter of 2023 and dropped to 20.5% in the first quarter of 2025.
Li Auto's high - speed profit "flywheel" has clearly lost momentum. One of the reasons is that its debut in the pure - electric strategy, the Li Auto MEGA, did not meet expectations.
This model, which was highly anticipated internally and aimed to conquer the high - end pure - electric MPV market, did not sell well in the early days after its launch in March 2024. The monthly sales exceeded 1,000 vehicles in only three months of the year, far from the expected level.
Now, with the launch of the MEGA Home model, the sales of this model have improved. According to data from Dongchedi, in June and July this year, the sales of the MEGA reached 2,300 and 2,800 vehicles respectively, ranking first among large MPVs.
However, compared with models like the Buick GL8, Toyota Sienna, Voyah Dreamer, and Denza D9, which sell six to seven thousand vehicles per month, the sales of the Li Auto MEGA are not high.
The MEGA did not achieve great sales success, and Li Auto's entry into the pure - electric market did not have a good start. Throughout 2024, Li Auto's best - selling models were still range - extended vehicles.
In April 2024, Li Auto launched the range - extended model Li L6, a five - seater SUV with a smaller size and a price below 250,000 yuan. The L6 was a success, and its monthly sales quickly climbed above 20,000 vehicles, becoming the main sales pillar for Li Auto from the second half of 2024 to the first half of 2025, stabilizing the company's market position.
However, behind the success of the L6, Li Auto still has not found a new growth point outside of range - extended models, and the fact that lower - profit models have become the sales mainstay has further pulled down the overall gross profit margin.
Therefore, the pure - electric SUV Li Auto i8 is no longer just an "icing on the cake" for Li Auto's rapid development but a "battle for redemption" after facing financial pressure and a setback in its first pure - electric venture.
NIO has more motivation than Li Auto to conquer the three - row pure - electric SUV market.
In 2024, NIO delivered 222,000 vehicles throughout the year, a year - on - year increase of 38.7%. In 2025, its delivery volume exploded in the second quarter, with the quarterly delivery volume exceeding 70,000 vehicles, setting a new record.
However, NIO is still far from making a profit. The net loss in 2024 was as high as 2.2402 billion yuan, and in the first quarter of 2025, the net loss was 675 million yuan, a year - on - year increase of 30.2%. Although NIO has 26 billion yuan in cash, it is obviously under great pressure.
NIO previously launched its sub - brand, LeDao. Since the five - seater SUV LeDao L60 started deliveries in the fourth quarter of 2024, its monthly sales are now stable at around 6,000 vehicles, quickly becoming an important contributor to NIO's sales volume. Its appearance has made the total delivery volume data for the first half of 2025 look much better.
However, the "high - volume sales" of the LeDao L60 are just the first step. The real test lies in whether it can improve the company's financial situation.
Judging from the financial report for the first quarter of 2025, the answer is not optimistic. NIO's overall gross profit margin is still hovering in the single - digit range, and there are no signs of the loss narrowing. Although the LeDao L60 has brought in sales, it is not yet enough to reverse the company's financial difficulties.
In this context, the six - seater SUV LeDao L90, which directly competes with the Li Auto i8, bears even higher expectations. It not only needs to continue the sales momentum of the L60 but, more importantly, it must have a higher gross profit margin than the L60 and truly start to "generate blood" for the company.
The newly launched NIO ES8 is also crucial for NIO to improve its profit performance. This car targets the high - end market, and if it sells well, NIO's goal of turning a profit in the fourth quarter of this year is expected to be achieved.
02
Li Auto and NIO have each presented their "major offerings" and are ready to fight a big battle in the pure - electric three - row SUV market in the second half of the year, but Tesla has entered the arena with the six - seater Model Y L.
With the two ace models, the Model 3 and Model Y, Tesla has always been a leading player in the Chinese new - energy vehicle market. However, since 2024, this global electric - vehicle giant has faced considerable pressure in the Chinese market.
Last year, Tesla's cumulative sales in the Chinese market were approximately 657,000 vehicles, a year - on - year increase of only 8.8%, far lower than the overall growth rate of 35.5% in the new - energy vehicle market.
In 2025, Tesla's performance in the Chinese market has not improved. According to statistics from Changjiang Business Daily, Tesla's sales in China in the first half of the year totaled 263,400 vehicles, a year - on - year decrease of approximately 5.4% compared with 278,300 vehicles in the same period last year.
In addition to the decline in sales, Tesla has had to adjust its pricing strategy multiple times in the price war among Chinese automakers, which has dragged down its profit margin. In the second quarter of this year, Tesla's gross profit margin was 17.2%, a 0.8 - percentage - point decline compared with the same period last year.
The current problems Tesla faces are a microcosm of the long - term challenges it has encountered in the Chinese market.
In the past few years, several pillars that Tesla relied on for success in the past - brand halo, technological gap, and cost advantage - have all been weakened. Frequent price cuts and a constant stream of local competitors have also made Tesla's "luxury" and "technology" labels gradually fade.
Take the intelligent driving function as an example. Tesla's FSD was approved for testing in some Chinese cities in the first half of the year. In contrast, local rivals such as Hongmeng Zhixing and XPeng have already widely promoted the map - less urban NOA function. Tesla's experience advantage is not obvious, and the high optional - equipment price also limits its popularity.
Small space and a "bare - bones" interior are another shortcoming that Tesla is often criticized for. The Model Y and Model 3 feature a minimalist interior design, and the space is not very spacious, which seems out of place in the face of Chinese consumers' growing demand for comfortable, luxurious, and intelligent cockpits.
Of course, Tesla's strengths are also prominent - strong brand power, excellent handling, and an industry - leading energy - consumption ratio, which are enough to attract a large number of orders. The domestic sales of the Model Y exceeded 170,000 vehicles in the first half of the year, leading not only among new - energy brands but also among fuel - powered models, making it the best - selling model in the entire SUV market.
However, in the face of the decline in sales and gross profit margin in the Chinese market, Tesla cannot turn a blind eye.
In the face of the "saturation attack" from local brands, it may not be easy for Tesla to hold its ground just by cutting prices and making minor adjustments. It must make changes, changes that are more in line with the needs of the Chinese market.
The card that Tesla has played is the Model Y L.
Compared with the five - seater version, the main change in the Model Y L is its "larger" size. In addition, compared with the Model X, which costs seven or eight hundred thousand yuan, being able to buy a Tesla