Chinese EV Maker Nio Plans Global Expansion Starting With Europe Later This Year

Nio Inc (NYSE: NIO) Chairman William Li said Thursday that the electric vehicle maker has plans to expand into other markets in the second half of 2020, CNBC reported.

What Happened

The Telsa Inc (NASDAQ: TSLA) rival is considering a foray into countries that are electric vehicle-friendly. “We hope to begin with Europe,” Li told reporters, without giving further details, according to CNBC.

The Chinese firm also unveiled a “battery-as-a-service” product Thursday, where customers can subscribe to receive battery packs starting at $140, after purchasing electric cars without a battery.

Nio is collaborating with Tesla’s supplier Contemporary Amperex Technology Co. Ltd, better known as CATL, and others, in establishing a new company in Wuhan that will support its battery product.

Why It Matters

The automaker said it delivered a record 3,740 vehicles in June and over 10,000 for the second quarter. Nio shares have risen gained nearly 243% YTD.

Elon Musk-led Tesla is also betting big on Europe as its upcoming Gigafactory in Berlin nears competition. Established automakers are also moving to grab the growing EV market in the continent, with Volkswagen AG (OTC: VWAGY) announcing Thursday it had begun the production of its all-electric EV SUV.

Price Action 

Nio shares traded 0.58% lower at $13.70 in the pre-market session on Friday.

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