NIO Stock – Why NIO Stock Is Higher Today
NIO Stock – Why NIO Stock Is Greater Today
Shares of NIO (NYSE: NIO) were moving greater on Monday after the Chinese electric-vehicle maker said that its production companion had agreed to double its manufacturing capability to accumulate to 240,000 NIOs per year.
Since 1:15 p.m. EDT, NIO‘s American depositary shares were up about 5.7% from Friday‘s closing rate.
Some history: NIO does not possess a manufacturing facility; its vehicles are made under contract by a joint endeavor with government-owned automaker Jianghuai Automobile Group, or JAC, in a JAC-owned factory in the commercial city of Hefei, near NIO‘s head office.
NIO said on Monday early morning that it has actually signed a new three-year agreement with JAC to proceed that plan via ( at the very least) May of 2024. As part of the bargain, JAC has agreed to boost the production ability of the factory to 240,000 lorries each year, or 20,000 monthly— dual its present capability. NIO Stock.
NIO as well as JAC really did not state when that capacity boost will remain in area, however the announcement is likely why NIO stock is trading higher today.
Automobile investors who comply with NIO stock understand that the business has actually been working given that late last year to raise result at JAC‘s manufacturing facility amid fast-rising demand for its stylish electrical SUVs. The firm was able to increase the manufacturing price from around 5,000 vehicles a month to 7,500 each month in early January and also has actually pushed it higher given that.
At a ceremony to note the 100,000 th NIO built at the factory in very early April, CEO William Li Container said that the manufacturing facility can now construct about 10,000 NIOs monthly. But, Li said, manufacturing has yet to hit that number because of an recurring worldwide scarcity of automobile semiconductors.
NIO stock and also most various other influenced car manufacturers now anticipate the chip scarcity to last into 2022, though supplies are anticipated to enhance somewhat in the 2nd fifty percent of this year.