Gasgoo Munich- What major events shook up the new energy vehicle market this week?
Stellantis and Dongfeng Group Plan European Joint Venture
Gasgoo News — On May 20, Stellantis announced it had signed a non-binding memorandum of understanding with Dongfeng Motor Group Co., Ltd. (hereinafter "Dongfeng Group") to deepen their strategic partnership, building on 34 years of collaboration. Under the preliminary plan, the two intend to establish a new joint venture in Europe to handle sales, distribution, manufacturing, procurement, and engineering R&D for Dongfeng's new energy vehicles in designated markets.
Image Credit: Stellantis
The proposed JV would be headquartered in Europe and operated by Stellantis, which would hold a 51% stake against Dongfeng's 49%. A key focus will be advancing Voyah, Dongfeng's premium NEV brand, in Europe by leveraging Stellantis's established dealership and after-sales networks. The partnership also aims to explore cooperation in joint procurement and engineering R&D, drawing on Dongfeng's deep integration with China's NEV supply chain.
Additionally, the companies are discussing the possibility of local production of Dongfeng's NEV models at Stellantis's Rennes plant in France. This move would help meet European regulatory compliance and "Made in Europe" requirements.
However, the project's final realization depends on factors including profitability, commercial conditions, progress on agreements, and regulatory approvals.
Gasgoo Comment: If finalized, Stellantis and Dongfeng will renew their ties, using Voyah as a wedge to crack the European market and usher in a new phase of "Made in Europe" for Chinese brands.
NIO Reports Profit for Second Consecutive Quarter
On May 21, NIO officially released its financial report for the first quarter of 2026.
The headline figures are striking: NIO posted an operating profit of 66.8 million yuan, marking a second straight quarter of profitability. Total revenue hit 25.53 billion yuan, up 112.2% year-over-year. Gross profit surged 428.4% to 4.86 billion yuan. The company's comprehensive gross margin stood at 19.0% — a four-year high — while vehicle gross margin reached 18.8%, climbing for four consecutive quarters to another four-year peak. Other sales gross margin also hit a four-year high of 20.6%. By the end of the quarter, NIO held a cash reserve of 48.2 billion yuan and generated positive operating cash flow for the third quarter in a row.
For the second quarter of 2026, NIO forecasts deliveries between 110,000 and 115,000 units, representing growth of 52.7% to 59.6%. Revenue is projected to range from 32.78 billion to 34.44 billion yuan, an increase of 72.4% to 81.2%.
Image Credit: NIO
The first quarter of 2026 brought a rare "market winter" to the domestic auto industry. Overall demand shrank significantly, passenger car sales slumped, and surging raw material costs pushed per-vehicle manufacturing expenses up by over 10,000 yuan. Consequently, total industry profits plummeted. Against this backdrop, NIO bucked the trend to achieve profitability again. With two consecutive quarters of positive earnings, the quality of these profits is evident, suggesting ample room for revaluing the company's long-term prospects.
On the earnings call, William Li stated that the company's three brands have gained wide recognition from their target audiences. NIO remains committed to the pure-electric route and is strengthening its systemic innovation capabilities, building a competitive moat through technology, product, service, and community. He emphasized that after eleven years of investment, NIO has built 12 full-stack self-developed systems around core smart EV technologies, gradually forming systemic innovation capabilities across R&D, supply chain, manufacturing, quality, energy, and service.
Gasgoo Comment: NIO's ability to stand firm and grow amid the industry chill stems from its long-term vision in anticipating trends.
Li Xiang’s "Embodied AI" Debut: All-New Li Auto L9 Deliveries Begin
Gasgoo has learned that the all-new Li Auto L9 officially began deliveries on May 17 in Changzhou and Hangzhou, with more cities to follow.
Launched on May 15, the all-new L9 is Li Auto's first flagship SUV equipped with "embodied AI" technology. It comes in two trims: the L9 Livis and L9 Ultra. The Ultra version is priced at 509,800 yuan, while the Livis version retails at 459,800 yuan nationwide.
Image Credit: Li Auto
In the view of Li Auto Chairman and CEO Li Xiang, embodied AI is a massive industry that will split into various forms. However, autonomous driving and general-purpose humanoid robots are destined to be the two largest categories, representing the first and second halves of the embodied AI era.
To that end, Li Auto upgraded its corporate vision earlier this year to "become a global leader in embodied AI." The all-new Li Auto L9 Livis is the first flagship product on this path.
As Li Auto's inaugural work for the embodied AI era, the new L9 is no longer just a passive vehicle. It is endowed with the ability to perceive its environment, understand intent, proactively anticipate needs, and continuously evolve.
This capability stems largely from the new L9's self-developed Mach M100 chip. With two chips delivering a total computing power of 2,560 TOPS, combined with the Mach VLA model and Star Ring OS, the car evolves into a "life form" capable of learning and growth.
The chassis is another highlight of this generation. The new L9 globally debuted a "complete" steer-by-wire chassis, integrating steer-by-wire, rear-wheel steering, and EMB mechanical braking. Paired with 800V active suspension, it elevates the handling flexibility and ride comfort of this over-5.2-meter full-size SUV to a new dimension.
Gasgoo Comment: Beyond its traditional advantages of "extended range and large space," the new L9 uses "embodied AI" to build a technological barrier, potentially setting a new benchmark for the premium family SUV market.
Stellantis Joins Forces with Leapmotor to Build Affordable EVs in Italy
Gasgoo News reports, citing Bloomberg, that Stellantis plans to partner with China's Leapmotor to build a compact pure electric model in Italy. The move aims to cut production costs and secure more competitive electric vehicle technology.
On May 19, Stellantis confirmed that the new vehicle, codenamed "E-Car," will go into production at its Pomigliano plant in Italy starting in 2028. The battery technology will be co-developed with premium partners. Sources indicated that Leapmotor is the core partner for this project, though official plans have yet to be publicly released.
Both Stellantis and Leapmotor have declined to comment on the specifics of the partnership.
The automaker, which owns brands like Opel and Peugeot, has already partnered with Leapmotor in Spain to develop an electric SUV for the European market. That deal also includes Leapmotor utilizing Stellantis facilities for vehicle production. The French union Force Ouvrière (FO) stated this month that Stellantis is expected to launch more similar projects at its underutilized European plants.
Currently, Leapmotor and Stellantis are collaborating on sales and channel layout in Europe. Leapmotor's T03 city car is already competing head-to-head with entry-level EVs from Renault and Volkswagen.
"Consumers are looking forward to once again having stylish, European-made, affordable, and green small cars," Stellantis CEO Antonio Filosa said in a statement on May 19.
Gasgoo Comment: By leveraging Leapmotor's technology to accelerate its electrification transition, Stellantis is not only reviving idle European capacity but also injecting a "Chinese core" into the affordable EV segment.
Tesla Raises Model Y Prices in U.S. for First Time in Two Years
Gasgoo News: Tesla's U.S. website shows the automaker increased prices for several Model Y variants on May 16. The Long Range All-Wheel Drive and Long Range Rear-Wheel Drive versions each rose by $1,000, bringing prices to $49,990 and $45,990 respectively. The Performance All-Wheel Drive version increased by $500 to $57,990. Tesla did not disclose the reason for the adjustment.
Image Credit: Tesla
Additionally, last August, despite underwhelming sales and recalls for the Cybertruck pickup, Tesla raised the price of its top-tier trim by $15,000 in the U.S.
The last time Tesla raised Model Y prices was in 2024, when it increased prices across the lineup by $1,000. This marks the first price hike in two years.
Although the recent increases are modest — all under 3% — the signal they send is far more significant than the numbers. Tesla held prices on the entry-level model steady to maintain price-sensitive customers, while raising prices on higher-spec versions to boost margins.
Over the past two years, Tesla has been mired in a price war in the U.S. In April 2024, it cut Model Y prices by up to $2,000, setting a record low for the model at the time. Starting early 2023, Tesla implemented successive cuts, with the Model Y's official price dropping by as much as $13,000 at one point to counter intensifying competition and sluggish demand.
While the price cuts kept Tesla's factories running, they severely eroded profitability. The company's automotive gross margin fell from over 25% in early 2023 to below 18% by mid-2025. Each cut reflected a market demand that was struggling to keep up with output capacity.
Gasgoo Comment: As rivals slash prices, Tesla's decision to raise rates suggests the company believes the supply-demand balance has shifted — particularly for high-end models.
