Why NIO Stock Is Moving Higher Today

NIO traders predict excellent recordsdata this weekend.

What occurred

Shares of Chinese language electric-car maker NIO (NYSE:NIO) had been transferring greater on Thursday morning. Investors are searching forward to the firm’s annual NIO Day, residing for Saturday, when it is a ways anticipated to give an clarification for a contemporary sedan mannequin and longer-fluctuate battery packs.

As of 10: 15 a.m. EST, NIO’s American depositary shares had been up about 5.2% from Wednesday’s closing mark.

So what

NIO Day is the firm’s annual celebration for its possibilities and followers, veritably held about a weeks sooner than the Chinese language Original 300 and sixty five days. Besides to to are residing tune and varied festivities, NIO uses the events to give an clarification for contemporary models and provide updates on its technologies. 

Here’s what NIO has told us to hunt recordsdata from at this 300 and sixty five days’s edition:

  • A contemporary sedan mannequin, seemingly a production version of the ET Preview concept car that NIO showed in 2019.
  • A brand contemporary 150 kilowatt-hour (kWh) battery pack that could be an choice on the contemporary sedan. I seek recordsdata from that — appreciate the 100 kWh pack NIO presented in November — this could per chance well moreover match into existing NIOs, offering homeowners the choice to pork as much as a longer-fluctuate pack. 
  • Original driver-back technologies. (NIO has described its contemporary system as “self reliant,” nonetheless auto traders could per chance well well aloof account for that phrase is old considerably extra freely in China than within the U.S. Or not it is seemingly that NIO’s contemporary system will fall brief of factual Level 4 self-utilizing, nonetheless we are able to be severely surprised.)

Anticipation around those bulletins is inclined to be helping the stock shuffle up these days.

The NIO ET Preview, a sleek white electric sedan.

NIO’s contemporary sedan is inclined to closely resemble the ET Preview concept car, shown in 2019. Image source: NIO.

Now what

There could per chance well well per chance be a shock or two at NIO Day. One possibility: Chinese language auto-industry recordsdata field Yuguan Auto Market reported that NIO has signed a care for battery big Contemporary Amperex Technologies, or CATL, to take hang of lithium iron phosphate batteries. 

Lithium iron phosphate batteries had been largely superseded for most electric-car functions by ternary lithium batteries lots of years within the past, nonetheless they’ve not too prolonged within the past won reputation with upscale EV makers in China as a lower-mark choice. Battery packs the usage of lithium iron phosphate cells are less vitality-dense than ternary batteries, that ability they’re heavier and provide less fluctuate, nonetheless they moreover mark less to invent. 

A pair of NIO’s yell opponents — XPeng and Tesla, in about a of its China-market models — comprise begun offering lower-mark models with lithium iron phosphate batteries. Or not it is that you just’ll seemingly be ready to gain of that NIO plans to note the same path. 

In that case, that could be incrementally bullish for the firm’s gross sales. We will learn extra on Saturday.

 


John Rosevear has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.”>

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