(Yicai Global) June 16 -- Nio’s shares surged after the Chinese electric car startup launched a five-seat sport utility vehicle that founder William Li said “might be our fastest delivery from unveiling.”

Nio’s Hong Kong-listed shares [HKG: 9866] jumped 4.2 percent today to close at HKD155.30 (USD19.78). In pre-market trading in New York, the firm’s stock [NYSE: NIO] was trading 2.2 percent down at USD19.65 as of 4.02 a.m. local time, after soaring 7.8 percent yesterday.

Deliveries of the ES7 are expected to begin on Aug. 28, Li, who is also chairman and chief executive of the Shanghai-based automaker, said at a press conference yesterday. The car, Nio’s fourth SUV model, is priced at between CNY468,000 and CNY548,000 (USD69,709 and USD81,624).

The faster handover time suggests Nio’s production is recovering after Shanghai’s two-month Covid lockdown ended on June 1. Its deliveries rose nearly 5 percent in May from a year earlier to a little over 7,000 units, still much less than domestic rivals Li Auto and Xpeng Motors which are based in other cities, after they slumped 29 percent in April.

Beijing-based Li Auto logged a nearly twofold month-on-month increase to almost 11,500 in May, while Xpeng nearly doubled its deliveries to almost 10,130. They are also picking up the pace. The pair are expected to launch two new models this month with customer handovers also starting as early as August, Yicai Global learned. 

Nio is confident about rapidly increasing the number of delivered vehicles in the second half, Li said, as the company will continue to hike production across its entire supply chain.

China has recently issued a series of new policies to spur car buying, which Li predicted will boost upgrades to high-end new energy vehicles and additional purchases.

Editors: Dou Shicong, Emmi Laine, Xiao Yi