NIO-SW (09866) shares surged 5.30% in Tuesday's pre-market trading, outperforming the broader market. The Chinese electric vehicle maker's stock rally comes on the heels of several positive announcements regarding its European expansion strategy and a new product launch.

During a press event ahead of the Shanghai Auto Show, NIO CEO William Li revealed that the company is actively seeking partnerships with local entities to accelerate its expansion in Europe. Li stated that NIO plans to sign agreements with several European partners during the auto show, signaling a renewed focus on strengthening its presence in the region. Additionally, NIO President Qin Lihong announced the company's intention to launch its Firefly electric vehicle in Europe during the third quarter, further bolstering investor confidence in NIO's growth prospects.

While NIO's CEO acknowledged that the company's progress in Europe had been slower than initially anticipated, citing underestimated challenges in sales and service network expansion, the market appears to be responding positively to the company's proactive approach to addressing these issues. The stock's upward movement aligns with a broader trend observed in the electric vehicle sector, as several EV stocks, including Xiaomi, Leapmotor, and Li Auto, also showed gains against the prevailing market trend.