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.
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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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