NIO Inc. (NYSE:NIO) shares are falling on Thursday.
According to Benzinga Pro, NIO stock has lost over 45% in the past year.
The company’s founder, William Li, disclosed intentions to pursue European expansion despite uncertainty regarding potential tariffs on Chinese EVs by the European Union, Reuters reported.
“Electric vehicles are very important for positive development of the environment, they should never be used as a political target,” Li told reporters as NIO opened a showroom in Amsterdam, the report added.
NIO’s new showroom is located in the heart of Amsterdam, on a corner where a bridge crosses one of the city’s famous canals, per the report.
He mentioned that in the event of substantial tariffs imposed by the EU, the company would make the most reasonable business decision.
As of today, Nio has 43 battery swap stations in Europe, 15 of which are located in Germany, data monitored by CnEV Post show. The company has 2,420 such stations in China.
Nio’s Dutch expansion coincides with Chinese EV manufacturers’ broader entry into Europe, while the EU contemplates increased tariffs on imported EVs.
However, European carmakers’ executives express concerns over the potential ramifications of EU plans, arguing that higher tariffs may offer minimal protection to the industry, Reuters noted.
In March, the European Commission initiated customs registration for Chinese EV imports, potentially subjecting them to tariffs pending an ongoing investigation on unfair state subsidies.
Investors can gain exposure to the stock via KraneShares MSCI China Clean Technology Index ETF (NYSE:KGRN) and Invesco Golden Dragon China ETF (NASDAQ:PGJ).
Price Action: NIO shares are trading lower by 8.69% to $4.784 at last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.