- NYSE:NIO gained 3.99% to pace the EV sector on Tuesday.
- Nio and Lotus-owner Geely announce a new partnership for the future.
- Nio commences test drives of the ES8 SUV in Norway.
Update September 1: NIO Inc (NYSE: NIO) has been recovering from the lows on Wednesday, trading above $39.25 after an early dive under $38. While shares of the Chinese electric vehicle maker are struggling to surge, investors have good reasons to be cheerful. An agreement with Geely and new tests in Norway has provided optimism to shareholders. It is essential to note that Beijing’s “techlash” remains a significant force in shaping the direction of Chinese-based companies.
NYSE:NIO investors finally received some promising news after weeks of negative headlines surrounding the fatal self-driving accident in China. Shares of Nio revved higher on Tuesday, adding 3.99% to close the trading session at $39.31. The move paced the electric vehicle sector which saw positive days from Tesla (NASDAQ:TSLA), XPeng (NYSE:XPEV), and Li Auto (NASDAQ:LI). The latter two moved in sympathy with Nio as both XPeng and Li soared higher into the closing bell. In terms of fallers, Lucid Motors (NASDAQ:LCID) saw its sixth straight losing day, as the former SPAC stock broke down below the $20.00 price barrier for the first time since late May.
The big news that moved Nio’s stock on Tuesday was the announcement of a new partnership with Lotus. The famous European sports car brand is now owned by Chinese automaker Geely, which is set to launch its own electric vehicles later this year. The deal will see Nio take a stake in Lotus, a company that is set to launch several models of EVs over the next few years. Lotus is also eyeing a debut on the public markets, of which Nio will receive a substantial payday from.
NIO stock forecast
As Nio prepares for its official launch in Norway in September, the company has been busy with test driving the ES8 SUV in its new climate. Several features have stood out to Norwegian test drivers so far including the Snow Mode, which will no doubt come in handy in Norway, as well as a full 360 degrees camera to see if there are any obstacles either in front or behind the vehicle.
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