Why NIO Stock Is Higher Today

By The Motley Fool8 days ago

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What happened

Shares of Chinese electric vehicle maker NIO (NYSE: NIO) were rising on Thursday, following reports from a press conference in which the company's CEO discussed some of NIO's goals for 2021.

As of 1:15 p.m. EDT, NIO's American depositary shares were up about 4% from Wednesday's closing price.

So what

NIO held an event on Wednesday to mark the production of its 100,000th vehicle. At a press conference following the event, CEO William Bin Li shared a few items of interest to electric vehicle investors.

First, Li confirmed that NIO, together with the city of Hefei, will begin building a new industrial park for “smart electric vehicles“ on April 29. The plan to build the park -- part of a larger plan to establish Hefei as a center for electric vehicle development -- was part of a bailout deal for NIO that was put together by local economic development authorities last year. The park will include a new NIO factory.

The project will be led by a joint venture between NIO and its current manufacturing partner, JAC Motor, Li said.

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