Nio Inc. (NYSE: NIO), a Chinese electric vehicle manufacturer, closed about 2% higher in the regular session on Tuesday, extending its surge from the previous session.
What Happened: Nio’s stock rose above $50 for the first time since early March on Tuesday.
According to CnEVpost, the electric vehicle manufacturer unveiled five additional battery swap stations in Shanghai on Tuesday, bringing the total number of its battery swap stations in the country to 289. In the last two weeks, the firm has considerably increased the rate at which switch stations are being built.
Citi also raised its price target on Nio stock from $58.30 to $72 and kept its buy rating, noting forecasts for robust growth in the company’s shipments in the second quarter as well as sequential growth in the next two quarters.
Also see: Nio is rumored to be working on a $31,300 electric vehicle to boost its market share in China.
Why Does It Matter? Nio, a Tesla Inc. (NASDAQ: TSLA) competitor, is banking on service offerings to create an impression on Chinese customers. The company invented the concept of battery-as-a-service, which allows people to rent rather than buy a battery.
By the end of the year, Nio hopes to have 500 battery swap stations in China. Nio’s fourth mass-produced model, the ET7, is set to hit the market in the first quarter of 2022.
Price Changes: Nio shares surged 1.9 percent to $50.34 in Tuesday’s regular trading session, then rose 0.8 percent to $50.76 in the after-hours session.
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