Nio (NYSE:NIO) said its cars have now driven 10 billion kilometers, with more than 320,000 users now on the road.

Shares rose almost 2% overnight on the news. So far in 2023 Nio stock is down 17%, while that of Tesla (NASDAQ:TSLA) is up 47%.

Nio Banks on Battery Swaps

Nio has been banking on its battery swap technology to power sales in a crowded Chinese market. The latest version lets it change batteries in just a few minutes. The first version took half an hour.

While battery swaps are largely unknown in the U.S., they are much more popular in Asia, especially in the electric scooter market.

Most Nio cars are sold in China, but the company has been building out its battery swap infrastructure in Europe. It has focused on leasing its cars in Europe and hopes to deliver 200,000 cars this year. Production in February was double that of 2022.

Nio has refused to cut prices this year, despite repeated cuts by Tesla. The company says Tesla doesn’t have the market share in China to drive prices, and that’s where Nio is focused. For now, it has put its entry into the U.S. market on hold.

What Happens With NIO Stock Now?

Nio is opening a new factory to make lower-priced EVs for the European market. The success of that venture will drive its stock price later this year.

Nio must also be concerned with saturation of China’s high-end EV market. China has largely phased out subsidies for electric cars.

The U.S. launched new subsidies under the Inflation Reduction Act, but only for cars made in the U.S..

On the date of publication, Dana Blankenhorn held no positions in any company mentioned in this story. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.