Nio (NYSE:NIO) stock climbed a little over 2% Tuesday on news that the Chinese electric vehicle (EV) maker will show off its first mass-market car later this month.
It appears Nio has Tesla (NASDAQ:TSLA) in its sights this year as it prepares to launch a new model under a new brand. Indeed, according to Nio Chief Executive William Li, the company’s newly-created sub-brand, Onvo, is intended to rival Tesla’s best-selling Model Y EV.
“Nio is currently working on the launch of new car brands, that would be less premium, still obviously 100% electric, and more suited for the European market needs,” Nicolas Vincelot, general manager for France, said during a France-China business forum in Paris.
Just today, the official Onvo website launched in China, with a hint to “stay tuned” for info on its new L60 model. The first Onvo L60s are expected to launch in Europe before year-end.
NIO Stock Reverses Losses on Reports of New Brands
Interestingly, Onvo isn’t the only new brand in the works for Nio. The EV giant is also working on a second brand, currently code-named Firefly. Firefly models will reportedly be designed for city driving and will also be sold in Europe. Though the Firefly brand won’t be properly unveiled until 2025, it is expected to sell for less than $30,000 a pop, according to Vincelot.
One image of a prototype Firefly model displayed in Chinese auto media outlets shows a small-statured four-door hatchback.
NIO stock has been on something of a hot streak lately. Indeed, NIO is up almost 21% over the past five trading sessions, in the green 30% over the past month.
Unfortunately, even Nio hasn’t been immune to this year’s EV selloff. Nio is still in the red overall in 2024, down 32% year-to-date. Not alone, however, most EV makers have suffered brutal losses due to dwindling sales. This especially applies to Tesla, licking its wounds as it attempts to reverse its 25% losses this year.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
