The LeDarl L60 exploded onto the hot search. Recently, well-known automotive blogger Sun Shaojun revealed that the LeDarl L60 under nio inc (09866) received nearly 0.03 million orders within 72 hours, with each store adding 160 to 180 new orders, and this year's production capacity has been completely sold out. Li Bin confirmed this information, stating that the backend server has been expanded fivefold, and the L60 did indeed explode with orders.

According to the Zhitong Finance app, on September 19th, Le Dao's first car, the L60, was officially launched. This model was announced in May and available for pre-order, priced at 0.2199 million yuan initially. The standard version released this time starts at 0.2069 million yuan, which is 0.013 million yuan lower than the pre-sale price. The BaaS model is priced at only 0.1499 million yuan, exceeding market expectations. The price difference and abundant features have led to the large sales success of the L60.

With the popularity of the L60, a large number of criticisms and even 'black drafts' about Le Dao have emerged on short video platforms, focusing on battery rental and charging issues. Faced with negative public opinion, Li Bin humorously remarked, "It was supposed to be the six major sects ganging up on Mungbean Y, but Le Dao ended up being stabbed five times by friendly competitors".

So, what is the core logic behind the explosive sales of the Le Dao L60? What are the strengths and weaknesses compared to competing products? What does this mean for the entire Nio Inc system?

The underlying logic behind the explosive orders of the Le Dao L60

Any product selling well, the key point lies in a clear understanding of the 'target group.' The positioning of the Leahead L60 is a pure electric mid-size SUV, targeting young family users. In the price range of 0.2-0.3 million yuan, the competition is intense. Sedans such as the 7 series, including Xiaomi SU7 and XPeng P7, and JY07 are the main competitors, while SUV competitors are mainly the Model Y and XPeng G6, with overlapping price ranges, but the Leahead L60 has larger dimensions and greater flexibility in options and energy replenishment.

In the fiercely competitive new energy autos market, high cost performance is the first choice standard for purchasing a car. What makes the Leahead L60 able to make young family users open their wallets?

According to the Securities Times APP, the standard range version of the Leahead L60 is priced at 0.2069 million yuan, with an additional 0.02 million yuan for the four-wheel drive option. If you choose the long-range 85 kWh battery version, it will cost an additional 0.029 million yuan. The price for the fully equipped version is 0.2559 million yuan. In addition, consumers can choose between purchasing the entire car and battery rental service. Choosing the 60 kWh battery rental will reduce the price by 0.057 million yuan, with a monthly rent of 599 yuan, while the 85 kWh battery rental will reduce it by 0.086 million yuan, with a monthly rent of 899 yuan.

Comparing with the Model Y, the Model Y has three versions, namely the rear-wheel drive version at 0.2499 million yuan, the long-range version (CLTC of 688 km) at 0.2909 million yuan, and the high-performance version (all-wheel drive) at 0.3549 million yuan. In terms of price, the Model Y is significantly more expensive than the Leahead L60. In addition, purchasing the full self-driving feature for the Model Y costs an additional 0.064 million yuan, which essentially includes the city and highway NOA function, while most domestic brands in China offer this as standard.

In terms of configuration, the Leahead L60 has a longer wheelbase than the Model Y, providing more interior space. Under equal driving conditions, the battery capacity of the Leahead L60 is larger. The intelligent cockpit has more displays, and the small rear screen can meet entertainment needs, with little difference in human-machine interaction and system response.

Furthermore, the Leahead L60 offers massage seats for the front row, which caters well to family comfort needs. It's important to note that most models with this function are priced at over 0.3 million yuan.

Moreover, with a 900V high-voltage platform, a battery system that can be swapped or recharged, low energy consumption of 12.1 kWh per 100 kilometers, standard intelligent driving systems, and the Xiao Le AI family companion, all of these are differentiated features that surpass those of the Model Y, providing additional points for the Leahead L60 in terms of configuration.

What first attracts home users is the generous pricing, followed by comfort and features. Compared to the Model Y, the Ludo L60 offers many more features, with significantly higher configurations in the same functions, such as 900V high voltage and massage seats for both the driver and passenger, thereby gaining recognition from a large number of home users.

There are many controversies surrounding hot-selling cars, which face numerous challenges post their explosive popularity.

When someone becomes popular, they attract controversies, and vehicles are no exception. The L60 has many advantages in the same price range, but encountered a public opinion storm and even "stabbing" from domestic friendly competitors upon its market debut. Additionally, this popular car will also face intense competition from a new energy product line launched at a lower price point, as well as the reentry of BBA brands into the battlefield, and the tug-of-war between new and old brand philosophies in consumers' minds.

From a public opinion perspective, the current main focus is on "battery swap." The option of battery swapping for the Ludo L60 was initially meant to provide users with a flexible way of replenishing energy, but it has become the subject of negativity in short videos.

The consideration for battery swap option is based on users' typical car usage cycle (usually 8 years), spreading the reduced price over that period. For example, for standard models, the reduction of 0.057 million yuan over 8 years averages out to 594 yuan per month, with Ludo only making a profit of 5 yuan per month. This not only makes it easier for users to get into the car but also offers a more diverse way of replenishing energy. The main negative public opinion focuses on the idea of spending money on buying a car shell, and that the monthly payment for the battery of 500-1000 yuan is not cost-effective, ignoring the factor of getting into the car at a low price. This has little impact on actual users' needs but affects public opinion, making novice users feel like they have spent money on nothing but a "car shell."

In fact, battery swapping is one of the core advantages of Ludo L60 in energy replenishment, due to its collaboration with NIO, which has the largest network of energy replenishment systems in the country, including over 2500 battery swap stations. By the end of this year, Ludo will be able to share more than 1000 battery swap stations, including third and fourth generation stations. The industry is also increasing the development of battery swapping car models and joining the battery swap alliance led by NIO. As the pride and joy of NIO, Ludo naturally enjoys preferential treatment compared to other brands.

According to Sun Shaojun's disclosure, in the grand plan of the L60, as high as 70% opt for the BaaS car model, indicating that the battery swapping model has been widely accepted by the masses and is not as bad as portrayed in short videos.

The new energy automotive industry is rapidly evolving. With the release of major car models, prices are decreasing one after another. The Ludo L60 has moved BaaS car models to a price range of 0.15-0.2 million yuan, setting the trend for price reductions in the Xiaopeng G6 and Model Y, and also establishing the price range for newly launched SUV models. SUV models with equivalent configurations are expected to shift the battleground to this price range. Ludo L60 is bound to face even more intense industry competition.

In addition, BBA rejoining the price war will reshape the composition of users of joint venture brands and domestic brands. Taking BMW as an example, recently BMW reduced the price of its mid-size electric car, the BMW 2024 eDrive 35L, by 0.13 million yuan to 0.2239 million yuan. This price point will undoubtedly compete directly with the Lixiang ONE L60. The value of BBA's symbol is deeply rooted in some consumers. Even if the configuration is far behind domestic brands, as long as the price falls into the acceptable range, some consumers are still willing to pay for the car badge.

Drive a substantial improvement in overall sales and cash flow for Nio Inc.

After analyzing the logic behind the success of the Lixiang ONE L60 and the challenges it may face, we return to the perspective of the capital markets to see what impact this car will have on the Nio Inc. system.

From the industry perspective, the new energy autos industry is still in a high-speed development phase, with a penetration rate exceeding 30% this year and even exceeding 50% for passenger vehicles on a monthly basis. The success of Xiaopeng Motors' MONA and Nio Inc.'s Lixiang ONE may prompt more established brands to follow suit, creating new brands with a focus on higher cost performance to attract more consumers in the lower-tier market, increase sales volume, and alleviate the common cash flow pressures.

Regarding the pricing of the Lixiang ONE L60, Li Bin stated that even if it is 0.043 million cheaper than the Tesla Model Y, there is still profit to be made. If the Lixiang ONE L60 continues to sell well, with an increase in profit margin, it will undoubtedly greatly improve Nio Inc.'s profitability and cash flow.

Although specific order data for the Lixiang ONE L60 has not been disclosed, based on Li Bin's indication of October 5000 units, December 10000 units, and a capacity of 0.02 million units in March next year, the Lixiang ONE L60 is highly likely to become the sales leader among all Nio Inc. models. After delivery volumes of existing Nio Inc. models exceeded 0.02 million units for four consecutive months (May-August 2024), with the ramp-up of Lixiang production capacity, if monthly sales reach 0.02 million units next year, without considering new models, Nio Inc.'s monthly sales could approach or exceed 0.05 million units, potentially leading in pure electric vehicle sales.

Let's make a rough calculation: If the average monthly sales of the Lixiang ONE L60 next year are 0.02 million units, that's 0.24 million units in a year. With an average price of 0.22 million yuan per vehicle, it would generate revenue of 52.8 billion yuan, contributing 5.28 billion yuan in gross profit at a 10% gross margin. This would significantly reduce Nio Inc.'s shareholder losses, drive the company into a profit cycle, and boost investor confidence in holding stocks.

The capital markets have also shown trust in Nio Inc. Since the launch of the Lixiang ONE L60, Nio Inc.'s Hong Kong-listed stock has continuously surged, with a cumulative increase of nearly 40% in September, leading the rise among new forces in the auto industry.

In general, Leda is the brand of Nio that drives volume. With Leda L60 as the first model, it has successfully captured a portion of the young family consumer group and the potential consumer group of BBA for electric vehicle replacement demand by virtue of its higher cost performance compared to Tesla Model Y, more convenient recharging, and more comfortable and intelligent configuration. The explosive sales of Leda L60 will significantly improve Nio's overall sales volume and cash flow, but it will also face many challenges in the future, still a long way to go.