What's going on?

Nio reported a strong quarter for deliveries late last week, as the Chinese electric vehicle (EV) maker proved that it�s not what you know�

What does this mean?

EV makers have been struggling to get their hands on parts recently, but Nio�s been managing better than most. That�s because its EVs are manufactured by the Chinese government-backed Jianghuai Automobile Group � a well-connected firm with the heft to get suppliers on side. And it pulled it out of the bag: Nio delivered 44% more cars than the same time the year before, pushing up its overall revenue by 49%.

But none of those parts came cheap, and that extra cost � along with Nio�s ongoing investment in a new product lineup � saw the EV maker post a $340 million loss last quarter. And when it followed up with a worse-than-expected revenue outlook for this quarter, investors didn�t hesitate to send its stock down.

Why should I care?

For markets: Nio�s keeping busy.
Nio�s stock has now lost nearly 40% of its value this year, but the EV maker has a plan to turn things around: it�s aiming to launch three new models this year. One of those � due to be delivered to Chinese buyers this week � is being hailed as a direct rival to Tesla�s Model S, and analysts seem to believe the hype: their average price target for Nio�s stock is now $47 � more than double its current price of $20.

The bigger picture: Anything Tesla can�t do�
Nio has another project on the go too: the EV maker is planning to work with competitor Geely to set up 24,000 Chinese battery swapping stations � a faster alternative to charging � by 2025. It must know something Tesla doesn�t: the US EV maker already experimented with swapping batteries in 2014, only to scrap the project soon after.