Nio Launches Mass-Market Brand in Direct Challenge to Tesla (1)

Nio Inc. is launching a more affordable electric car brand in China in a bid to gain a firmer foothold in the world’s most competitive market as Tesla Inc.’s momentum slips.

The brand, dubbed Onvo, will target family users with its first model, which competes directly with Tesla’s Model Y and Toyota Corp.’s RAV4 sport utility vehicles, Nio Chief Executive Officer William Li said at an event in Shanghai Wednesday. The launch vehicle — the medium-sized L60 SUV — is “longer, wider, and roomier than the Model Y,” he said.

Onvo’s L60 SUV

Source: Nio Inc.

The L60, which will be delivered ...