Shares of Tesla Inc. rival Nio Inc. NIO surged nearly 2% in premarket trading on Monday amid reports of the Chinese automaker working on a hybrid electric car under the Firefly brand.

As per Benzinga Pro data, Nio shares were trading at $5.17 during premarket hours on Monday after closing at $5.10 on Friday.

The hybrid model will be sold in overseas markets including the Middle East, North Africa, and Europe but not within China, according to a Reuters report. Currently, Nio manufactures only battery electric vehicles.

Nio investor Abu Dhabi investment vehicle CYVN Holdings suggested the hybrid model to boost sales in the Middle Eastern markets where there is not sufficient charging infrastructure for mass adoption of BEVs.

While the vehicle is slated for launch in late 2026, deliveries are expected to commence in 2027.

Nio did not immediately respond to Benzinga’s request for comment.

Deliveries Gather Steam: Nio also registered a growth of 30.5% year-on-year in its deliveries in October, surging to 20,976 vehicles during the month.

This includes 16,657 NIO brand vehicles and 4,319 ONVO brand vehicles.

Deliveries of the first ONVO vehicle – the ONVO L60 – commenced in late September, making October the first whole month of sales for the family-oriented EV brand.

Why It Matters: Nio has yet to launch any vehicles under the Firefly brand. The brand is aimed at the budget segment and its first model is set to be unveiled in December.

The report of Nio considering a hybrid model comes on the heels of the European Union hiking tariffs on EVs made in China and imported to the country. Hybrids are exempted from these increased tariffs.

EV adoption has also been slowing in certain foreign markets.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next:

Photo courtesy: Shutterstock