Chinese EV giant NIO Inc. (NYSE:NIO) shares are trading higher on Friday. The company will reportedly launch its cheaper Firefly brand in Europe in 2025.

The company's Firefly and Alps brands will manufacture vehicles for families, with Firefly focusing on smaller models, according to a news report by Reuters, citing a press conference statement from the company's president, Lihong Qin.

Qin, however, did not give pricing details for the two brands, the report read.

Also Read: This EV Maker Returned More Than Tesla Over Past Year

Chinese EV makers are riding a wave of expansion into Europe, capitalizing on a cost advantage as demand at home slows and Western competitors adopt the new technology more slowly. 

However, the European Union is examining imports of Chinese EVs to determine if they contravene competition rules, the report adds.

Nio, competing in China's premium EV market against brands like Bayerische Motoren Werke AG (OTC:BMWYY) BMW and Mercedes Benz Group AG (OTC:MBGAF) with vehicles priced above 298,000 yuan ($42,000), is experiencing growing losses due to a price war initiated by Tesla, Inc. (NASDAQ:TSLA) that's impacting its profitability, according to the Reuters report.

To reduce expenses, the company has cut 10% of its workforce, is contemplating the separation of divisions like its battery production segment, and is establishing partnerships to finance initiatives like battery swapping.

Nio has since inked a third partnership deal, but it is too soon to disclose details, Qin added, which Reuters notes.

Read Next: What's Going On With Software Company Palantir Shares Today?

Price Action: NIO shares are trading higher by 1.17% to $7.95 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo Via Company