Nio Inc (NYSE:NIO) stock was trading higher Thursday amid reports that the EV maker is launching its first vehicle under the Onvo brand, marked at a discount versus Tesla Inc (NASDAQ:TSLA). It has reversed the gains since then.

Nio’s L60 SUV will be priced around $4,000 less than Tesla’s Model Y. Nio plans to deliver the L60 in September.

Nio’s CEO, William Li, mentioned in a CNBC interview that he anticipates Onvo will eventually sell its cars internationally.

Also Read: Tesla’s Chinese Rival Nio Partners With Warren Buffett-Backed BYD To Launch Budget-Friendly EV Brand

Nio has historically targeted the premium car market and recently expanded into Europe. However, its monthly deliveries in China have been relatively modest compared to competitors.

Despite fierce competition in China’s electric vehicle market, Tesla remains a major player with significant sales.

Nio also confirmed that the L60 uses more affordable batteries supplied by BYD Co (OTC:BYDDF) (OTC:BYDDY). This move comes as global competition from Chinese electric vehicle makers has led to significant new tariffs by the Biden administration, imposing a 100% tariff on Chinese EV imports to the U.S., which Li criticized as “completely unreasonable.”

Recently Nio rival XPeng Inc (NYSE:XPEV) also followed suit as reports indicated it is leveraging BYD batteries for its Mona sub-brand.

At the launch event, Alan Ai, president of the Nio sub-brand, said that Onvo vehicles would have access to Nio’s battery swap and charging stations network.

Nio stock lost 33% in the last 12 months. Investors can gain exposure to the stock via KraneShares MSCI China Clean Technology Index ETF (NYSE:KGRN) and KraneShares Electric Vehicles And Future Mobility Index ETF (NYSE:KARS).

Price Action: NIO shares are trading lower by 1.22% to $5.66 at last check Thursday.

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