Nio's decision to cut prices on all new models and discontinue the free battery exchange service for new users may negatively impact its revenue and margins. This comes after the company reported a Q1 FY23 sales growth that missed the consensus, with vehicle sales declining and vehicle margin contracting. The price cuts may attract more customers, but it could also lead to lower revenue per vehicle and potentially lower overall profitability.

Nio's decision to cut prices on all its new models may increase competition for Tesla in the Chinese EV market. As Nio is a direct rival to Tesla, the price cuts may attract more customers to Nio's vehicles, potentially affecting Tesla's market share and sales in China. However, the extent of the impact on Tesla will depend on various factors, including the overall demand for EVs in China and Tesla's ability to maintain its competitive edge through innovation and product differentiation.