NIO Inc. introduced its new smart electric vehicle sub-brand, ONVO, with the L60 model gaining popularity among family customers, ranking among the top three best-selling battery electric vehicles in its price range. Despite strong reception, ONVO’s overall sales performance fell short of expectations due to financial pressures. The brand’s second model, the L90, will debut soon.

Competition in the EV market is intensifying, with NIO ONVO L60 competing with Tesla’s Model Y and XPeng’s G6. NIO’s budget-friendly L60 has emerged as a strong rival to Tesla’s Model Y, with Tesla reporting a decline in second-quarter deliveries amid increased competition. XPeng’s G6 model is priced competitively against the ONVO L60.

NIO’s performance in the stock market has outperformed the industry YTD, but the company appears overvalued based on its price/sales ratio. EPS estimates for 2025 and 2026 have seen slight revisions in the past 30 days. NIO’s multi-brand strategy with ONVO faces challenges in achieving expected margins and sales performance in a competitive EV market.

Read more at Nasdaq: Will NIO’s Multi-Brand Strategy Come to Fruition With ONVO in 2025?