Premium-segment-focused Nio Inc NIO may be gearing up to make mass-market vehicles, the company’s CEO William Li suggested Sunday, as reported by Reuters.
What Happened: The Chinese automaker, which competes with the likes of Audi-maker Volkswagen AG VWAGY, Mercedes-Benz-parent Daimler AG DDAIF, and Bayerische Motoren Werke AG BMWYY, would launch mass-market vehicles under another marque, as per Li.
“As EV technologies advance and battery cost lowers, it is possible that we may enter the massive market, but definitely not with Nio brand,” said the CEO.
Why It Matters: Nio launched its first-ever sedan dubbed the ET7 over the weekend. The vehicle’s standard edition is priced at $69,185 before subsidies.
The sedan will pitch Nio against high-end competitors but not against market leader Tesla Inc TSLA.
The car may also offer competition to an EV made by Apple Inc AAPL who is likely to forge a partnership with Korea’s Hyundai Motor Company HYMTF as early as March, according to an unconfirmed report.
See Also: How To Buy Apple Stock
Price Action: Nio shares closed nearly 8.5% higher at $58.92 on Friday and gained 0.24% in the after-hours session.
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