NIO Stock surges in premarket trading. What’s going on?

NIO Inc (NIO), specializing in the design and development of smart high-performance EV’s, and a leading producer of eco-friendly smart cars, announced that it will report its unaudited financial result for the first quarter of 2021, on Thursday, April 29, 2021, after the close of the U.S. markets. NIO share price increased adjacent to the news.


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NIO Inc. (NIO) stock has soared 1.01% at $36.02 in premarket trading hours at the last check. In the past 12 months, the company’s stock has advanced 1014.38% with NIO shares fluctuating between $34.56 and $37.059 throughout the day. Nio stock had a staggering increase from $3.24 at the beginning of 2020 to a high of $50 earlier this year before going back to its current price of $35.86 at the last check.

About NIO

Founded in November 2014, NIO specializes in manufacturing premium electric vehicles, emphasizing innovations in next-generation technologies in autonomous driving and long-term battery sustainability. NIO’s distinctive competency over its peers is its technological breakthroughs and high-level innovation, such as its proprietary autonomous driving technologies, and Autonomous Driving.

Nio has also recently announced the completion of a power swap station jointly constructed by Sinopec. It was put into operation on Thursday at the Chaoying gas filling station in Beijing.

In accordance to the announcement by Nio, the Chaoying power swap station consists of the second-generation battery swap technology. Battery recharge can take place without users having to get out of their cars with 13 high-capacity batteries potentially completing up to 312 battery swaps in 24 hours, with an estimated average time of four and a half minutes.

However, unforeseen circumstances like the global chip shortage factor,can potentially result in NIO failing to hit its delivery projections during this quarter (ending Jun 30, 2021).

Conclusion

NIO operates in the remunerative space of smart electric vehicles, and sustainable batteries. Its long-term revenue growth and an increasing number of EV production has proven to anticipate great sales, however global shortages of chips may halt the company’s stock price to further skyrocket.

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