Nio (NYSE:NIO) is holding a launch event for its ES6, a luxury electric SUV, tomorrow, May 24 in Shanghai. However, NIO stock is down about 1.5% this morning.

The ES6 and an ET7 sedan will be linchpins for Nio’s Electric Vehicle (EV) line for the next year. The cars are said to include a new entertainment system and augmented reality glasses.

NIO stock jumped nearly 9% on May 22, ending the day at $8.80 per share, a market cap of nearly $15 billion.

The Nio Enigma

Since its founding in 2014, Nio has been the most enigmatic of China’s Tesla (NASDAQ:TSLA) competitors but not the most successful.

Nio pioneered fast battery swapping and invested in the leading edge of battery technology. It has sought a foothold in Europe and even invested in nuclear fusion.

What it hasn’t done is sell a lot of cars. After selling over 15,000 cars in December 2022, it delivered just 6,658 in April.

Since 2020, when Nio signed a subsidy deal with a Chinese provincial government, the company has operated as the top end of the state-backed JAC Motors line. JAC, which has a joint venture with Volkswagen (OTCMKTS:VWAGY), makes over 500,000 cars per year.

Nio’s economic freedom has made it the leader in high-end EV design and in EV business models. Speculators are buying Nio based on hopes for big European sales. Time will tell whether those sales materialize.

NIO Stock: What Happens Next?

Nio next reports earnings on June 9. While a loss is expected, analysts will be looking closely at sales figures and export numbers for signs the company is succeeding in opening European markets.

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