NIO Inc. (NYSE: NIO) stock rose over 2% in intraday trading Monday following reports suggesting the company plans to introduce its first mass-market electric vehicle (EV) later this month.
According to Reuters, NIO, China’s leading electric vehicle manufacturer, is preparing to introduce a new model under a mass-market brand by the end of May. Moreover, the company plans to unveil a smaller EV for the European market next year, priced at less than $30,000.
William Li, CEO of NIO, has revealed that the company has established the sub-brand Onvo for its new EV launch. Onvo aims to compete directly with Tesla’s (NASDAQ: TSLA) Model Y, the top-selling EV globally.
Speaking at a France-China business forum in Paris, Nicolas Vincelot, NIO’s general manager for France, disclosed that the company is developing new car brands that are less premium but still 100% electric and better suited to the needs of the European market.
On Monday, the official website for the Onvo brand went live in China, teasing the upcoming release of the L60 model and encouraging enthusiasts to “stay tuned” for further details. Vincelot indicated that more information about the Onvo brand, previously known as “Alps”, would be unveiled by the end of the month.
A loss-making EV manufacturer is introducing Onvo as just one of two sub-brands, with the second one, codenamed “Firefly”, focusing on smaller EVs designed for urban driving and priced below $30,000. The company expects to launch the first Onvo L60 models globally by this year’s end, while it plans to unveil the Firefly brand in 2025.
NIO Inc. (NYSE: NIO) Stock Reaction
NIO stock surged by 2.15% to close at $5.69 on Monday, marking a 23.70% increase in value for the week. Trading activity has witnessed 75,071,847 (75.07 million) shares changing hands, well above the average daily volume of 54.17 million.
