Chinese Tesla rival Nio launches new electric SUV

Nio on Wednesday launched the ES7 sports utility vehicle as competition with Tesla intensifies in China.

The ES7 adds another competitor to Tesla's Model Y and Model X in China as the competition in the electric SUV space ramps up.

Nio is trying to differentiate its electric SUV by highlighting the technology features of the vehicle.

This includes Nio Autonomous Driving, the company's system that powers some semi-autonomous driving features.

The company also highlighted its infotainment system which includes a 23-speaker surround-sound configuration in the car.

Nio's ES7 comes in three different range capabilities depending on the battery size — 485 kilometers, 620 kilometers and 930 kilometers.

The ES7 with the 485-kilometer range starts from 468,000 Chinese yuan ($69,693) before subsidies. The longest range version starts at 526,000 yuan before subsidies.

Pre-orders have begun with deliveries expected to begin in August.

Shares of Nio were up more than 4% on Wednesday.

Nio said the ES7 is one of the first certified passenger cars in China to be able to tow a caravan or trailer.

Nio and its peers have been struggling with existing supply chain disruption that has been worsened by a resurgence of Covid-19 in China and subsequent lockdowns in and around key manufacturing hubs in the country.

The company reported a rise in first-quarter revenue though its loss widened. While production was hampered in April and May, the company's second-quarter delivery outlook suggests a bounce back in June.

Tesla meanwhile has also been struggling with production at its key China factory in Shanghai, which has been gripped by a particularly lengthy lockdown.