Key Takeaways
Chinese electric vehicle maker Nio Inc. launched its 2026 Onvo L90 SUV at a starting price of RMB 265,800, directly challenging Tesla's dominance in the family SUV market with a price point 22% below the competing Model Y Long Range.
"With an expanding product lineup and continuous product upgrades, the ONVO brand will deliver the finest mobility experiences to more family users, driving steady sales growth,” Nio CEO William Li said in March.
The new L90 model introduces a LiDAR sensor and is equipped with Nio's first in-house designed 5nm autonomous driving chip, the Shenji NX9031. The vehicle is offered in six and seven-seat configurations across Pro, Max+, and Ultra+ variants, with a "Battery as a Service" (BaaS) option lowering the initial purchase price to RMB 179,800. Deliveries are scheduled to begin on May 9.
The launch intensifies the price war in China's crowded EV market. By bringing advanced chip design in-house, Nio aims to reduce reliance on suppliers like Nvidia and improve margins, a critical step as it seeks to build on the 50,000 vehicles its Onvo sub-brand has already delivered since its 2024 debut. The Pro version of the L90 will continue to use the Nvidia Orin X chip with a pure vision-based system, which is slated for an upgrade in July 2026.
Nio's strategic inclusion of LiDAR is a notable divergence from Tesla CEO Elon Musk's public stance, which has consistently favored a vision-only approach to autonomous driving. The move signals Nio's bet that more advanced sensor hardware is key to winning the autonomous driving race.
The Onvo brand, positioned to compete in the mass market, is a crucial part of Nio's growth strategy. Following the L90, a five-seat SUV called the L80 is expected in the second quarter. According to data from Koyfin, 16 of the 25 analysts covering Nio rate the stock a ‘Buy’ or higher, with a 12-month average price target of $6.58.
This article is for informational purposes only and does not constitute investment advice.
