Nio ES8 topshotThe third-generation Nio ES8 is so good that it helped make Nio profitable.A friend of mine loves his Acura ZDX. A rare, one-year-only affair that he got a great deal on, it was the car for him in a crowded field of premium electric SUVs.But sometimes we both chat about how, as much as he enjoys his car, it feels like a bit of a stand-in for the level of luxury he'd want from his next vehicle. The ZDX is quiet and quick, but it's missing a lot of features that he considers luxurious, like soft-close doors or quilted leather. Sure, other U.S.-market EVs can provide some of these features, but a lot of them are well out of his price range. From his perspective, it feels unfair that there's such a high cost of entry for "luxury" cars that, from his perspective, don't really feel worth it.When I got a chance to get behind the wheel of the latest Nio ES8 SUV in China recently, my friend and his perception of luxury were at the top of my mind. Here I was, behind the wheel of a big, plush SUV that I think would likely suit him significantly better than his ZDX, but he can't have it. Chinese buyers are impressed with the car, too, and it's done wonders for helping Nio break through in China's brutally competitive EV market. The new third-generation ES8 has sold 120,000 units within its first year on sale, and 100,000 of those came in the first seven months. The ES8 is responsible for about half of Nio's sales in China, and its success helped the brand reach its first-ever profitable quarter in late 2025.AdvertisementAdvertisementAfter spending a day with one, I understand why.Nio ES8Nio ES8Nio ES8Nio ES8AdvertisementAdvertisementNio ES8Nio ES8Nio ES8Nio ES8AdvertisementAdvertisementNio ES8Nio ES8Nio ES8Nio ES8AdvertisementAdvertisementNio ES8Nio ES8Nio ES8Nio ES8AdvertisementAdvertisementNio ES8What is it?I've written about Nio at length here plenty of times, and I've driven a great deal of its lineup. The brand is best known for selling luxury models that can swap out their batteries, thanks to an interchangeable pack and a network of automaker-owned swapping stations. Nio ES8This ES8 crossover, now in its third generation, sits near the top of Nio's range, only recently bested by the larger-than-life, Chevy Tahoe-sized ES9. It's a bit longer than big luxury crossovers like the Cadillac Vistiq or Lincoln Aviator, but smaller than large EVs like the Cadillac Escalade IQ. Like those vehicles, the ES8 is a full-on three-row vehicle. Similar to the Vistiq and Aviator, the ES8 feels like it would be right at home in the parking lot of an Erewhon or Whole Foods grocery store.I find the blocky ES8 to be handsome enough, even if the previous generation's styling was sharper and more unique. In most other ways, though, the latest ES8 is a big step up from the outgoing version. That helps explain its runaway success.AdvertisementAdvertisementUnderneath, the new ES8 has undergone a pretty thorough redesign and rides on Nio's new chassis, called "NT 3.0." All ES8s have the same dual-motor 697-horsepower setup, fed by a swappable 102 kWh battery. Nio says the crossover is good for 394 miles of range on China's CLTC standard. Under the skin, it shares a lot with the higher-end ES9 and ET9, although it has to settle for air suspension rather than the GPS-involved SkyRide intelligent chassis system that I fell in love with last year. The interior is higher-quality and better-packaged, too. The old ES8 wasn't bad, but the new model is more spacious, the second row has a ton of room, and the third row feels like it now has room for adults. The ES8 also now has a sizable frunk, whereas the old car didn't have a frunk at all.Nio ES8In the old ES8, there were a few places in the interior where a hard surface or a slightly less-than-good plastic could be found. In the new one, that isn't the case at all. The ES8's level of quality and refinement is up there with the best. There's not a single trim piece or interior plastic that isn't soft to the touch. There is impeccable attention to detail; the car is screwed together immaculately. The quilted leather on all the seats is soft and high quality, and the car is feature-packed in ways that you might not see from a comparable big expensive crossover from brands that aren't Chinese.Nio ES8Nio ES8Photos by: Kevin Williams/InsideEVsAdvertisementAdvertisementThe ES8 only comes in two trims, and the unit I had on test was the base model with the seven-seat (middle row bench seat) option. Yet, the car came with heated and cooled massage seats on both front seats, a fridge that can cool to below freezing or warm its contents up a stunning 130 degrees, active noise canceling, and an impeccably responsive infotainment screen running on a chipset that was developed in-house. There's a centrally mounted touchscreen that bisects a slim, elegant display stretching the entire width of the dash. If this car were made by an automaker not from China, we'd likely praise it for being revolutionary, since it has so many cool things going for it. In China, the ES8 will just have to settle for merely being impressive, but that's par for the course in such a competitive market. So, why is this thing such a big deal?In China, the car market is so competitive that even good models can struggle. It's hard to stand out in a place where updates are constant, and buyers are especially sensitive to prices. Nio pulled it off by making a great SUV—and also by making it a good value. Chinese cars are known for having featherweight prices, yet Nio has historically bucked this trend. The ES8 at one point cost $70,000; that's decent for a three-row luxury EV in, say, North America, but that's really expensive for China's market. For ES8's third generation, Nio cut the price significantly. The unit I drove would sticker for about $59,600—about $10,000 cheaper than the old car. If the buyer opts into Nio's battery-as-a-service leasing program, the purchase price drops to $43,000. Even in China, that's a hell of a lot of car for only $43,000. Chinese buyers saw the value in the ES8 and bought it in droves. And that's paid off nicely for Nio; the company notched a second consecutive quarter of profitability in Q1. Very few EV companies—in China or elsewhere—manage to actually make money at this. And Nio's doing it. Nio ES8For the rest of the world, this shows that the battle between China's car brands isn't t quite over yet. China's dozens of brands can't all exist forever, and some will inevitably fold. Nio's bad profitability and poor performance in Europe have some wondering if it'll continue onward, especially since, based on sales trends, its mainstream brand, Onvo, hasn't been the Tesla killer many thought it would be. But the ES8's success (and profitability) tells me that Nio actually does have a chance.AdvertisementAdvertisementThe updated ES8 hasn't been exported outside of China yet, but Nio says it has plans to introduce it to other markets, like Europe and the Middle East, soon. If Nio cuts the price of the ES8 in those markets too, then I expect a bump in sales there as well. But given America's stance on Chinese cars—just look at what happened to Polestar this week—my friend is going to have to keep his Acura for the time being.Contact the author: kevin.williams@insideevs.comRelated ArticlesI Played Nintendo Switch In A Chinese EVWhile You Stop For A 30-Minute Charge, Nio Just Swapped 1 Million EV Batteries In A WeekWatch How Fast This EV Swaps Its BatteryChina's EV Companies Aren't Just Making Great Cars. They're Making MoneyNIO ES8As-Tested Price$60,000, estBattery102 kWhEV Range394 miles (CLTC)Drive TypeAWDOutput697 hpSeating Capacity6 or 7Speed 0-62 MPH3.97 secondsMotordual