Chinese electric vehicle (EV) maker Nio (NYSE:NIO) said it will report unaudited March quarter results on June 6. NIO stock is up about 1% in pre-market trading.

CEO William Li said the company will maintain a “premium aura” even after launching its Onvo mass-market cars later this year.

Like other Chinese brands, Nio has been buffeted by a price war and hopes to sell cars at $25,000 next year.

Nio was due to open in New York this morning at $5.30 per share, a market capitalization of $11 billion. NIO stock is down 37% so far in 2024.

Tip of the Export Spear

Nio is of particular interest because it is further along in its export push than other Chinese car makers.

Nio will launch its Onvo brand in Europe later this year.

While its Nio cars were priced to compete with high-end Tesla (NASDAQ:TSLA) models, the new cars will be price competitive with those of Toyota Motor (NYSE:TM). Li insisted, however, that he would not engage in a price war to spur sales. Instead, he will only offer premium services like free battery swaps to lure customers.

Nio pioneered the use of fast battery swaps in China. The exchanges, which can take as little as five minutes, maintain a car’s range and come with a full charge.

The first Onvo car, the L60, will be priced at $30,500, 12% less than the Tesla Model Y. It will be profitable, Li said, once Nio is producing 20,000 per month. Nio delivered 15,620 cars in April.

While Nio works to make cars at a profit, it is continuing to sign battery swap partnerships with other car makers. State-owned FAW Group is the seventh to join this alliance. This should lead to battery size standards, more swap stations, and lower prices through shared procurement. The other companies in the alliance are Chinese, except for Lotus, which is controlled by alliance member Geely (OTCMKTS:GELYY).

NIO Stock: What Happens Next?

BYD (OTCMKTS:BYDDY) is pushing Nio and other brands to export. Goldman Sachs says EV prices in mainland China have dropped 10% since February, when the market leader started cutting prices.

On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.