NIO Stock Slides: Onvo L80 Buzz Fades After Surprise Discounts Trigger Buyer Backlash Ahead Of Q1 Earnings

• Onvo faced online backlash after reports said it quietly offered an 8,000 yuan subsidy to select L80 buyers shortly after launch.
• Early reservation holders complained that they were excluded from the new incentive despite having ordered earlier, while some later buyers reportedly received better deals.
• Deutsche Bank warned that L80 deliveries could slow after an initial surge.

U.S.-listed shares of Nio, Inc. (NIO) slid over 2% in overnight trading heading into Wednesday as growing backlash around the launch of Onvo’s new L80 SUV added to investor concerns over whether the company can sustain momentum in China’s crowded EV market ahead of first-quarter (Q1) earnings.

NIO’s U.S.-listed stock fell over 2% on Tuesday to end at $5.74. 

Onvo L80 Launch Backlash

The pressure on the stock comes just days after Onvo rolled out the L80 in China, with online criticism intensifying after reports surfaced that the company quietly introduced new purchase incentives for select buyers shortly after launch, according to a report by ChinaEVHome. 

Onvo, Nio’s family-focused sub-brand, launched the five-seat L80 SUV at a starting price of 242,800 yuan ($35,800), slightly below its earlier pre-sale level. Buyers using Nio’s Battery-as-a-Service (BaaS) program can lower the upfront cost to 156,800 yuan.

However, enthusiasm around the launch quickly faded after reports emerged that Onvo had begun privately offering an 8,000 yuan options subsidy to customers taking delivery within May. The incentive was reportedly communicated directly through sales advisors rather than through a public announcement.

The move triggered frustration among some early reservation holders whose vehicles had already entered production queues, leaving them unable to qualify for the new benefit despite having placed their orders earlier. Some buyers complained that later customers were receiving better pricing, while others said they were encouraged to switch to showroom inventory vehicles to access the subsidy.

Onvo also reportedly began issuing 80,000 reward points to some customers who had already taken delivery as compensation.

China EV Price War Pressures Onvo

The controversy has reignited speculation over Onvo’s launch planning and whether the company was forced into reactive discounting to maintain order momentum. Unlike many Chinese EV launches that rely on major launch-day price cuts to generate excitement, the L80’s final launch pricing was only about 3,000 yuan below its pre-sale price.

Nio co-founder Qin Lihong has previously said that the EV maker did not want to follow the industry practice of inflating pre-sale pricing only to slash prices later.  The issue has become particularly sensitive as Chinese automakers continue to fight for share through subsidies, financing offers, rapid product launches, and advanced driver-assistance features.

Nio Gears Up For Key Q1 Print

The L80 launch comes as Nio ramps up one of its biggest recent product launches across both its premium and mass-market brands. The company is preparing refreshed versions of the Onvo L60 and L90 models while also moving ahead with the launch of its premium flagship ES9 SUV later this month. 

Investors are now turning their attention to Nio’s first-quarter earnings report due Thursday. According to Koyfin estimates, Wall Street expects revenue to decline 24% from the previous quarter to $3.75 billion. Analysts also expect adjusted loss per share (EPS) of $0.05, down from earnings of $0.04 in the previous quarter. Earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected at a loss of $174.37 million, while earnings before interest and taxes (EBIT) are forecast to swing to a loss of $210.21 million. 

Deutsche Bank Flags L80 Slowdown Risk

Deutsche Bank warned on Monday that Onvo’s early sales momentum could cool sharply once initial launch demand fades and competing models enter the segment.

The brokerage expects the L80 to eventually ramp up to monthly deliveries of around 10,000 units after production expansion, but forecast volumes could later normalize to around 4,000 units per month. Deutsche Bank said the trajectory mirrors the earlier pattern seen with the larger Onvo L90 SUV, which initially delivered over 10,000 units per month before slowing in subsequent quarters.

Deutsche Bank also noted that the L80 enters one of the most competitive areas of China’s EV market, where it faces rivals including Li Auto Inc.’s Li i6, BYD Company Limited’s Tang L EV, and XPeng Inc.’s G9.

However, the brokerage cited Thinkercar data and estimated that Nio secured 10,000 new vehicle orders in both the first and second weeks of May and expects total monthly order flow to remain near 42,000 units.

How Do Retail Traders Feel About NIO? 

On Stocktwits, retail sentiment for NIO was ‘bullish’ amid an 81% jump in message volumes over the past week.

One user said, “The fundamentals and stock price don't align... I continue to accumulate more shares than I could have ever imagined.”

Another user said, “bouncing hard off the long-term support level. Extremely bullish into ER! Sit back and watch! 15 by June 60 by Christmas.”

U.S.-listed NIO stock has risen 42% over the past year. 

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