The shares of Nio are bound to see bigger moves particularly with the firm’s readiness to throw its gauntlet in churning out advanced technologies.
The impressive performance from electric vehicle companies is not just limited to US-Based Tesla Inc (NASDAQ: TSLA), firms like Shanghai-based Nio Inc (NYSE: NIO) are also outperforming on US bourses evident in its shares which closed 6.42% higher on Monday and another 0.93% in the pre-market to $63.28 per share. The impressive growth of Nio comes following reports of the launch of the company’s new sedan EV dubbed ET7 in a bid to compete with rival Tesla, which now operates a Gigafactory out of Shanghai.
Nio’s revelation of the ET7 was accompanied by advanced batteries technology with a single charge power of 150kwh capacity or range of more than 621 miles (1,000km) against the average expected range of 370 to 500 miles respectively. The ET7 which was unveiled at its first NIO Day 2020 held in Chengdu affirms Nio’s commitment to gain fair market advantage with the rollout of its superior vehicle technologies.
“We will continuously invest in products and technologies, and speed up the development of our service network, thereby bringing a better experience of smart electric vehicles to users,” said William Li, Nio Founder, and Chairman.
The recent uptick in product rollout by Nio as well as the shares performance has prompted several Wall Street firms to raise their forecast on the stock, with JPMorgan Chase & Co (NYSE: JPM) giving the firm a price target of $75, a Wall Street high. Many have noted that the superior battery technology, as well as the integration of Autonomous Driving (AD) technology in the ET7 as well as Nio’s future product, will be the main drivers of the company’s impending growth.
Wedbush Securities analyst Dan Ives dubbed the company’s battery technology the “star of the show,” as reported by Yahoo Finance
“Nio introduced a more powerful 150-kilowatt-hour battery pack – an improvement on the 100 kWh battery pack the company launched in November – which will give Nio’s vehicles a claimed range of 625 miles,” Ives said in a note to investors.
Nio Shares to See Better Days with Growth in the EV Market
In a constantly advancing EV market, the shares of Nio are bound to see bigger moves particularly with the firm’s readiness to throw its gauntlet in churning out advanced technologies. While Li has earmarked the potentials in the EV market, he hinted to reporters on Sunday that the firm may pursue more aggressive entry into the EV marketplace but under a different business name.
“As EV technologies advance and battery cost lowers, it is possible that we may enter the massive market, but definitely not with Nio brand,” said Li.
The shares of Nio are set to continue on its upward trajectory this year following a 1000% rally in 2020, against the 700% growth of its rival Tesla and about 14% for the S&P 500 Index (INDEXSP: .IXP).
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.