Nio Inc. (NIO) shares dipped Wednesday as investors absorbed the latest chapter in Europe's ongoing tariff saga with Chinese automakers. But the company isn't backing down from its European ambitions.

The electric vehicle maker issued a statement saying it's pleased with what it calls "steady progress toward consensus" as the European Commission laid out formal conditions for tariff alternatives on China-made EVs, according to Reuters. The EU committed to applying non-discrimination principles under WTO rules when reviewing price undertakings—which sounds bureaucratic, but matters quite a bit for how NIO can operate there.

The Investigation Background

This all stems from an anti-subsidy probe the European Commission launched back in October 2023, looking into whether Chinese government support gave EV makers an unfair advantage. When the investigation wrapped up in 2025, the commission decided to slap additional tariffs on imported Chinese EVs for five years.

These levies come on top of an existing 10% base charge, and different manufacturers face different rates depending on the findings.

How NIO Is Adapting

NIO has spent recent years building direct sales outlets across multiple European countries, but now the company is shifting gears. It's moving toward an asset-light model that relies more on distributors for expansion—a smart pivot when the regulatory environment gets complicated.

The automaker is also betting on its Firefly sub-brand as the vehicle (literally) for reaching new overseas markets. Originally, NIO planned to launch Firefly in Europe first. But those tariff headwinds changed the calculus, so the company introduced the Firefly EV in China on April 19, 2025 instead.

NIO Price Action: Nio shares traded down 1.92% to $4.60 Wednesday.