Why Nio Stock Is On Fire Today

What took place

Shares of electric automobile (EV) company Nio ( NIO 2.41% ) fired up on Tuesday and had been up 3% as of 12: 10 p.m. ET earlier than popping almost 6.6% appropriate after market open.

There’s a lot occurring on the serve of the scenes at Nio no longer many are aware of: Nio’s astronomical day is coming up next week, it honest inked a partnership that’s no longer made it to the headlines but, and there might be a rumor floating about Nio’s 2d itemizing. That is all the things you can perhaps seemingly should know.

So what

Let’s open with the partnership: One in all the sector’s leading automobile leasing companies, LeasePlan, printed it had signed a partnership with Nio to give its flagship SUV, ES8, in Norway. Investors might perhaps perhaps very successfully be aware that Nio first launched its official entry into Norway in unimaginative September with its first ES8 supply, but its take care of LeasePlan is the vital of its form for the EV manufacturer in Europe. LeasePlan has almost 1.8 million vehicles across 29 worldwide locations and is committed to reaching fetch-zero emissions from is fast by 2030.

Nio SUV ES8.

Image source: Nio.

In the period in-between, Goldman Sachs honest reported Nio to be among the many U.S.-listed Chinese language corporations that would very successfully be eligible for a itemizing in Hong Kong, in accordance to the South China Morning Post. I wouldn’t be shocked if Nio, indeed, considers dual-itemizing one day in the long urge as it has more than one advantages and shall be a worthy backup at a time Chinese language shares in the U.S. face intense regulatory risks.

Above all, Nio honest confirmed through a put up on its app that it is a ways going to host Nio Day 2021 on Dec. 18, in accordance to CnEVPost, a files portal excited in regards to the aloof-vitality automobile industry in China. Nio is no longer most attention-grabbing anticipated to officially originate its sedan ET7 on Dec. 18, but additionally to unveil two assorted aloof models including an entry-level automobile model, the ET5. Factual days up to now, CnEVPost posted pictures of what’s suspected to be an ET5 sedan on a dual carriageway in China.

Now what

Whereas I am no longer going to read vital into the possibility of a secondary itemizing, Nio’s take care of LeasePlan holds a total lot of promise as it offers the EV maker a worthy opportunity to expand its footprint in Europe, especially when it is already planning to originate its ET7 in Norway next one year.

All eyes, though, are now on Dec. 18, because the models and enhance plans Nio unveils that day will prefer the put the inventory is headed. Earlier this month, Nio already won serve investor self assurance when it reported a 105.6% jump in its November deliveries, confirming the intelligent drop in its deliveries in October was an exception. Nio Day now has investors excited to peek what more the already promising EV maker has to give.

This text represents the opinion of the author, who might perhaps perhaps disagree with the “official” recommendation discipline of a Motley Fool premium advisory provider. We’re motley! Questioning an investing thesis – even one in every of our indulge in – helps us all think severely about investing and manufacture choices that help us became smarter, happier, and richer.

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