NIO Inc. ( NIO ) shares are trading higher on Tuesday.

The company’s sub-brand Firefly, which focuses on compact electric vehicles, announced an early rollout of its battery rental sales model. Originally planned for Aug. 1, the debut of its Battery-as-a-Service (BaaS) offering comes earlier than expected, likely reflecting efforts to bolster demand and improve sales performance, CnEV Post reports.

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Under the new plan, the base model of the Firefly EV will now be offered at RMB79,800 (approximately $11,120), down significantly from the previous price of RMB119,800 with an included battery.

The report adds that this marks a roughly 33% price cut aimed at boosting affordability through battery leasing.

The aggressive pricing update affects multiple trims of the Firefly EV. A higher-tier version has also seen its price slashed from RMB125,800 to RMB85,800, which is a 31.8% drop.

Customers who opt for the BaaS structure will pay a monthly fee of RMB399 for battery usage, separating battery ownership from the vehicle itself.

One of the key benefits Firefly emphasized is the mitigation of depreciation risks tied to battery degradation.

Because consumers do not own the battery, they're shielded from the reduced resale value typically associated with older EVs, CnEV Post adds. Additionally, battery-related maintenance and warranty concerns are covered by the leasing provider, removing another pain point for prospective buyers.

With the early launch of its BaaS model and aggressive price cuts, Firefly aims to strengthen its foothold in the affordable EV segment and respond to mounting sales challenges.

According to Benzinga Pro, NIO stock has lost over 20% in the past year.

Price Action: NIO shares are trading higher by 2.7% to $3.52 at last check on Tuesday.

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