LeDao L60's explosive sales made it to the hot search. Recently, well-known automotive blogger Sun Shaojun revealed that LeDao L60 under NIO (09866) received nearly 30,000 orders in 72 hours, with each store adding 160 to 180 new orders. This year's production capacity has been completely sold out. Li Bin confirmed the information, stating that the backend servers have been expanded by 5 times, and indeed, the L60 is selling like hotcakes.
According to the Wise Finance APP, on September 19th, LeDao's first car L60 was officially launched. The product was released in May and started accepting reservations. At that time, the price was starting at 219,900 yuan. The standard version launched this time is priced starting at 206,900 yuan, which is 13,000 yuan lower than the pre-sale price. The BaaS model is priced at only 149,900 yuan, exceeding market expectations. With the price lower than expected and rich configurations, the L60 achieved great sales.
With the popularity of the L60, there have been a large number of criticisms and even &#34;negative articles&#34; on short video platforms, focusing on battery rental and charging issues. Faced with the bad public opinion, Li Bin joked, &#34;It was supposed to be the six major sects attacking Maud Y together, but LeDao was stabbed five times by friendly competitors.&#34;
So, what is the core logic behind the explosive sales of LeDao L60? What are the advantages and disadvantages compared to competing products? What does it mean for the entire NIO system?
<h2>The logic behind the explosive sales of LeDao L60</h2>
The core point of any product selling well lies in the clear &#34;target group.&#34; LeDao L60 is positioned as a pure electric mid-size SUV, targeting young family users. In the price range of 200,000 to 300,000 yuan, the competition is fierce. Sedan competitors are mainly the 7 series, including Xiaomi SU7, XPeng P7, and ZEEKR 07, while SUV competitors are mainly Model Y and XPeng G6. The price range overlaps, but LeDao L60 has a larger size and is more flexible in terms of options and energy supplementation.
In the fiercely competitive new energy vehicle market, high cost performance is the first choice for car purchases. Why can LeDao L60 make young family users open their wallets?
According to the Wise Finance APP, the standard version of LeDao L60 with standard range is priced at 206,900 yuan. Adding four-wheel drive costs an additional 20,000 yuan, and choosing the long-range 85kWh battery version adds another 29,000 yuan. The high-end version with all options selected is priced at 255,900 yuan. In addition, consumers can choose between purchasing the entire vehicle or opting for battery rental services. Choosing the 60kWh battery rental reduces the price by 57,000 yuan, with a monthly rent of 599 yuan, while the 85kWh battery rental reduces the price by 86,000 yuan, with a monthly rent of 899 yuan
Compared to the Model Y, the Model Y has three versions: the rear-wheel drive version priced at 249,900 yuan, the long-range version (CLTC of 688 kilometers) priced at 290,900 yuan, and the high-performance version (all-wheel drive) priced at 354,900 yuan. In terms of price, the Model Y is significantly more expensive than the Leahead L60. Additionally, purchasing the fully automatic driving function for the Model Y costs 64,000 yuan, which is essentially the city and highway NOA in China, while domestic brands mostly come with this as standard.
In terms of configuration, the Leahead L60 has a longer wheelbase than the Model Y, providing more interior space. Under the same driving conditions, the battery capacity of the Leahead L60 is larger, it has more display screens in the intelligent cockpit, the small screens at the rear air vents can also meet viewing needs, and there is not much difference in human-machine interaction and system response.
Furthermore, the Leahead L60 offers massage functions for the front seats, which is very suitable for family comfort needs. It is worth noting that models with this feature are mostly priced at over 300,000 yuan.
Additionally, with a 900V high-voltage platform, a battery system that can be swapped or charged, low energy consumption of 12.1 degrees per hundred kilometers, standard intelligent driving systems, and the Xiaole AI home companion, these are all differentiated features that surpass the Model Y. These are additional points for the Leahead L60 in terms of configuration.
What attracts family users first is the competitive price, followed by comfort features. Compared to the Model Y, the Leahead L60 has many additional functions in terms of configuration parameters, with much higher configurations for the same functions, such as the 900V high-voltage system and front seat massage functions, thereby gaining recognition from a large number of family users.
<h2>Controversies arise after the hot sales, facing many challenges</h2>
Being in the spotlight attracts controversies, and cars are no exception. The L60 has many advantages in the same price range, but it faced a public relations storm and even &#34;backstabbing&#34; from domestic competitors as soon as it was launched. In addition, this popular model will face intense competition from new energy products with intensive launches and price reductions, as well as the re-entry of BBA brands into the market, and the competition between new and old brand concepts in the minds of users.
From a public relations perspective, the current focus is on &#34;battery swapping.&#34; The optional battery swapping feature of the Leahead L60, which was originally intended to provide users with flexible energy replenishment options, has become the focus of negative attention in short videos.
The battery swapping option takes into account the user's vehicle usage cycle (generally 8 years) and spreads the reduced price over each month within the cycle. For example, for the standard model with a reduced price of 57,000 yuan, spreading it over 8 years amounts to 594 yuan per month. Leahead only earns 5 yuan per month, making it easier for users to get on board and providing more diverse energy replenishment options. The negative public opinion mainly focuses on spending money to buy a car shell, the monthly cost of batteries ranging from 500 to 1000 yuan not being cost-effective, and neglecting the factor of low-cost boarding. This has little impact on actual demand users, but it affects public opinion, making novice users feel like they have spent money on a &#34;car shell.&#34;
In reality, battery swapping is one of the core advantages of the Leahead L60 in terms of energy replenishment, as it is backed by NIO, which has the largest energy replenishment system in the country, including over 2500 battery swapping stations. By the end of this year, Leahead can share over 1000 battery swapping stations, which are third and fourth-generation stations. The industry is also increasing the development of battery swapping models and joining NIO's battery swapping alliance, where Leahead, as the favored son, naturally enjoys preferential treatment compared to other brands
According to Sun Shaojun's disclosure, in the large order of L60, up to 70% of customers chose the BaaS model, indicating that the battery swapping model has been widely accepted by the public and is not as bad as &#34;short videos&#34; claim.
The new energy vehicle industry is already bustling. After major car models are released, prices continue to drop one after another. The decision of L60 to lower the price range of BaaS models to 150,000-200,000 RMB has driven expectations of price reductions for XPeng G6 and Tesla Model Y. At the same time, it has also set a pricing range for newly released SUV models, where SUVs with similar configurations are expected to compete in this price range. L60 will inevitably face more intense industry competition.
In addition, BBA rejoining the price war will reshape the user composition of joint venture brands and domestic brands. Taking BMW as an example, BMW recently reduced the price of its mid-size electric car, the 2024 eDrive 35L, by 130,000 RMB to 223,900 RMB. This price range will undoubtedly directly compete with L60. The perceived value of BBA brands is deeply rooted in some consumers. Even if they lag behind domestic brands in terms of configuration, as long as the price falls within their budget, some consumers are still willing to pay for the brand.
<h2>Driving significant improvement in NIO's overall sales and cash flow</h2>
After analyzing the logic behind L60's large orders and the challenges it will face, let's return to the perspective of the capital market and see what impact this car will have on the NIO ecosystem.
From an industry perspective, the new energy vehicle industry is still in rapid development. The penetration rate has exceeded 30% this year, with the monthly penetration rate of passenger cars even exceeding 50%. The success of XPeng MONA and NIO L60 may prompt more established brands to follow suit, creating new brands with a higher cost-performance ratio to attract more consumers in the lower-tier market segment, increase sales volume, and thereby alleviate the common cash flow pressure.
Regarding the pricing of L60, Li Bin stated that even if it is 43,000 RMB cheaper than the Tesla Model Y, there is still profit to be made. If L60 continues to receive large orders and the profit margin increases, it will undoubtedly significantly improve NIO's profitability and cash flow.
Although specific order data for L60 has not been disclosed, based on the production capacity revealed by Li Bin - 5,000 units in October, 10,000 units in December, and 20,000 units in March next year - L60 is highly likely to become the main sales force among all NIO models. After NIO's existing models delivered over 20,000 units for four consecutive months (May to August 2024), if L60's production capacity reaches 20,000 units per month next year, without considering new models, NIO's monthly sales could approach or exceed 50,000 units, potentially dominating the pure electric vehicle sales chart.
Let's make a rough calculation. If L60's average monthly sales next year are 20,000 units, that would be 240,000 units in a year. With an average price of 220,000 RMB per vehicle, it would generate revenue of 52.8 billion RMB, contributing 5.28 billion RMB in gross profit at a 10% gross margin. This will significantly reduce NIO's shareholder losses, drive the company into a profitable period, and boost investor confidence.
The capital market has also shown its trust in NIO. Since the listing of L60, NIO's Hong Kong-listed stocks have continued to soar, with a cumulative increase of nearly 40% in September, leading the new forces in the automotive industry
Overall, LeDao is the brand that NIO is pushing for volume. The LeDao L60, as the first model, with a higher cost-performance ratio than Tesla Model Y, more convenient recharging, more comfortable and intelligent configuration, has successfully captured a portion of young family consumer groups, as well as potential electric vehicle replacement demand from BBA. The explosive sales of LeDao L60 will drive a significant improvement in NIO's overall sales and cash flow, but will also face many challenges ahead, still a long and arduous journey

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Within 72 hours, LeDao L60 received nearly 30,000 orders, with each store adding 160 to 180 new orders on average. The production capacity has been sold out. Li Bin confirmed the information and mentioned that the server capacity will be increased by 5 times. The pricing of L60 is lower than expected, with rich configurations, attracting young family users. Despite facing public opinion challenges, LeDao L60 stands out in the fiercely competitive market with its high cost performance

- The Le Dao L60 has received nearly 30,000 orders within 72 hours of its launch, confirming its strong market demand.  
- Priced competitively against rivals like the Tesla Model Y, it offers features such as a flexible battery rental option and superior comfort, appealing to young families.  
- Despite its success, the L60 faces challenges from intense competition and negative public sentiment regarding its battery rental model, which could impact its market perception.

What does the surge in orders for the L60 model mean for NIO?