Chinese EV maker NIO (NYSE:NIO) is set to launch its Firefly brand in Europe in 2025, according to Reuters. While vehicle prices remained undisclosed, Lihong Qin, the company’s President, noted that cars from the Firefly and Alps brands will be targeted at the middle market. NIO’s Alps brand is expected to hit European markets after 2025.
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Amid slowing domestic demand and fierce price competition, Chinese EV manufacturers are increasingly looking at Europe to drive growth. However, electric vehicle imports from China are under regulatory scrutiny in the European Union over breach of competition norms.
While Chinese auto companies enjoy a cost advantage, their Western peers are taking steps to bridge this gap. Volkswagen (OTC:VWAGY) (DE:VOW3) plans to launch a new EV production platform in China with a focus on local consumers. Tesla, which already has a substantial presence in China, is looking to set up plants in India and Mexico.
Recently, NIO announced a 10% headcount trim. Earlier, the company reported a 46.6% year-over-year increase in revenue for the third quarter. Still, its net loss for the quarter increased by 10.8% year-over-year to $624.6 million. Further, a spin-off of its battery manufacturing unit could be in the making.
What is the Price Target of NIO Stock?
Shares of the company have dropped by nearly 35% over the past year. Overall, the Street has a Strong Buy consensus rating on NIO, and the average NIO stock price target of $11.36 points to 44.5% upside potential in the stock.
