Personal Finance

Nio Stock Jumps On China EV Maker’s Landmark 1,000-Kilometer Drive, Abu Dhabi Investment

Nio (NIO) announced a new, $2.2 billion investment from Abu Dhabi’s CYVN on Monday, a day after the Chinese electric vehicle maker’s CEO completed a 1,000-kilometer drive on a single charge. Nio stock jumped before the open.




X



Abu Dhabi government fund CYVN Holdings will expand its stake in the Tesla (TSLA) rival to about 20%. CYVN will invest $2.2 billion cash for 294 million newly issued shares. In July, CYVN completed a $1.1 billion investment. That included a direct $738.5 million strategic investment in Nio, as well as acquiring some $350 million worth of shares from Tencent Holdings (TCEHY).

CYVN will get two seats on Nio’s board of directors.

Nio’s 1,000-Kilometer Drive

On Sunday, William Li, Nio’s founder, chairman and CEO completed a livestream drive of 1,044 kilometers (624 miles) in an ET7 luxury sedan. The 150-kWH semi-solid-state battery still had 3% of charge remaining. Nio first unveiled the semi-solid-state battery at the Nio Day 2020 even on Jan. 9, 2021.

It’s the longest range of any mass-produced electric vehicle to date.

It’s unclear what the battery cost is but Nio’s battery swapping service opens up new options. Nio owners could rent an ultra-long-range battery for special trips.

On the livestream, Li confirmed that it will unveil a new flagship ET9 super-luxury ET9 sedan at Nio Day 2023 on Dec. 23.


Market Runs Hot; 6 Megacaps In Buy Range


Nio Stock

Nio stock jumped 9% in premarket trade Monday, signaling a move toward the 200-day line. Shares jumped 8.1% last week, reclaiming its 50-day line. Nio stock has tumbled from a 52-week high of 16.18 in August and its all-time high of 66.99 in January 2021.

Nio is losing money, something that isn’t expected to change anytime soon.

Separately, XPeng (XPEV) announced a $1,400 limited-time discount on its G6 crossover. It’s the latest round in an intensifying China EV price war. The flagship EV accounted for 43% of XPeng’s deliveries in November.

XPEV stock was little changed early Monday. Shares are down nearly 13% this month as of Dec. 15.

Please follow Ed Carson on X/Twitter at @IBD_ECarson, Threads at @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.

YOU MIGHT ALSO LIKE:

Best Growth Stocks To Buy And Watch

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today

Four AI Stocks Battling Back; Why They Deserve A Close Look

Illumina To Sell Grail After U.S. Antitrust Ruling

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button