By Sherry Qin


NIO's Hong Kong-listed shares rose sharply after the Chinese electric-vehicle maker launched a new model as part of efforts to boost demand and profitability amid stiffening competition in its home market.

Shares of the Shanghai-based EV maker advanced as much as 15% on Wednesday before paring gains to trade 9.7% higher at 69.30 Hong Kong dollars (US$8.88) at midday. The stock has fallen 11% this year.

NIO launched its flagship smart EV on Saturday, with features such as a self-developed autonomous-driving chip, ultrafast charging and swapping, and a unique suspension system, it said in an exchange filing late Tuesday.

The ET9 "comprehensively showcases NIO's research and development capabilities and achievements," founder and Chief Executive Bin Li said at the launch event.

NIO expects to start delivery of the ET9 in the first quarter of 2025, it said.

Deutsche Bank said in a research note that the EV maker risks losing consumer interest due to the long time gap, as many new EVs will launch between now and then.

It also questioned whether the investment in developing many new technologies was worth the cost, "especially in the context of the recent large capital raise."

NIO secured a US$2.2 billion strategic equity investment from Abu Dhabi-based CYVN Holdings earlier this month.

Deutsche Bank said that the ET9 could generate incremental excitement around the brand, but boosting sales volume is critical for the stock's performance.


Write to Sherry Qin at sherry.qin@wsj.com


(END) Dow Jones Newswires

12-26-23 2355ET