Will Nio's Newly-launched ET5 Pose A Threat To Tesla's Model 3?

Chinese EV startup Nio, Inc. unveiled a midsize sedan named ET5, its fifth vehicle mode, at its annual Nio Day event held amid fanfare on Saturday.

The EV has notched up record preorders, according to local media outlets.

The ET5, which will be the cheapest vehicle in Nio's product lineup once it launches, is seen as a challenger to Tesla, Inc.'s Model 3 sedan.

ET5 Vs. Model 3:An ET5 fitted with a 75 kilowatt-hour, or kWh battery would have a China Light-Duty Vehicle Test Cycle, or CLTC, range of 550 km, Nio said at the launch event. In comparison, the Model 3 base model has an EPA driving range of 556 km.

Nio's ET5 armed with the 150-kWh battery has a range of over 1,000 km.

Nio said the ET5 will have a dual-motor system - a 150 kW induction motor on the front and a 210 kW PM motor at the rear – and has 360 kW maximum power output, 480 horsepower and 700 N-m peak torque. In comparison, Model 3 comes with the option of dual motor AWD.

Nio's ET5 can accelerate from 0 to 100 km/h in 4.3 seconds, while the Model 3 is capable of accelerating from 0-60 mph (0-96.6 km/h) in about 3.1 seconds.

The sedans of the two companies are comparable on pricing. The base model of ET5 starts with 328,000 yuan ($51,448) and under a Battery-as-a-Service scheme, the vehicle costs 258,000 yuan and a 980-yuan monthly subscription fee.

The Giga Shanghai-made Model 3 vehicle is priced between 255,652 yuan and 339,900 yuan.

On dimensions, the ET5, which is 4,790 mm (188.6 inches) long, 1,960 mm (77.2 inches) wide and 1,499 mm (59 inches) high, with a wheelbase of 2,999 mm (113.7 inches), is slightly bigger than the Model 3, which is 184.8 inches long, 72.8 inches wide and 56.4 inches tall, with a 113.2-inch wheelbase.

Nio's ET5 draws much of its features from the pricier ET7 sedan the company announced at the start of the year. Other features incorporated in the ET5 include the Nio Autonomous Driving system, Nio Aquila Super Sensing and Nio Adam Super Computing systems. The NAD's full-suite of features will be available for a 680-yuan monthly subscription fee.

The vehicle's sophisticated interior comprises a 10.2-inch HDR instrument cluster and a large, tablet-style screen on the center console. It also comes with Nio's PanoCinema, a panoramic digital cockpit featuring Augmented and Virtual reality tech.

Why It's Important:Tesla currently has a stronghold on the Chinese EV market, which is said to be the lynchpin to the overall Tesla growth story. In November, Tesla sold 8,615 Model 3 units and 23,117 units of Model Y, taking its total China sales to 31,732 units.

Globally, the Model 3 is Tesla's best-selling car. With Nio nurturing ambitions of a big international expansion, it remains to be seen if the ET5 can give the Model 3 a run for its money.