Nio Inc. (NYSE:NIO) shares slid on Wednesday as trading opened, with investors digesting fresh EU policy news.
The Chinese electric vehicle maker vowed to keep pushing its business in Europe as the European Commission formalized conditions for China-made EVs' tariff alternatives.
The company issued a statement Tuesday saying it is pleased with what it calls "steady progress toward consensus," Reuters reports. The EU pledged to apply non-discrimination principles under WTO rules when reviewing price undertakings.
Investigation History
The European Commission opened an anti-subsidy probe on imported battery EVs in October 2023, per a report from CnEV Post.
The inquiry looked at whether the Chinese government’s support distorted competition, according to the report.
After the probe concluded in 2025, the commission moved to impose additional tariffs on imported EVs for five years.
Those levies are in addition to a 10% base charge, with different makers facing different tariffs.
Nio's European Strategy
Investors noted that Nio has built direct sales outlets across several European countries in recent years.
The company also said it is moving toward an asset-light model that leans on distributors for expansion.
Nio is using its Firefly sub-brand as the gateway for additional overseas markets, the report said.
The automaker had planned to debut Firefly first in Europe.
But because of the EU tariffs, it instead introduced the Firefly EV in China on April 19, 2025.
NIO Price Action: Nio shares are trading lower by 1.92% to $4.60 at last check Wednesday.
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