Shares of Chinese electric vehicle maker NIO Inc. (NIO) plummeted 5.07% on Wednesday in an intraday session, as the company officially announced the launch of its new 'Firefly' sub-brand focused on affordable, intelligent electric city cars.

Firefly is positioning itself as an "intelligent electric high-end small car brand" targeting urban customers seeking freedom and an enjoyable lifestyle. The brand's first model, also named Firefly, is slated for release in China in the first half of 2025, with a European launch expected around a quarter later.

While aiming for a global presence, Firefly will initially concentrate on the Chinese and European markets, with no immediate plans to enter the U.S. The brand's vehicles will support battery swapping but through separate swap stations tailored to their smaller battery sizes. Chassis tuning will also be customized for Chinese and European consumer preferences.