NIO Stock – Why NIO Stock Is Greater Today
Shares of NIO (NYSE: NIO) were moving greater on Monday after the Chinese electric-vehicle manufacturer stated that its manufacturing companion had accepted increase its production ability to build up to 240,000 NIOs annually.
Since 1:15 p.m. EDT, NIO‘s American depositary shares were up about 5.7% from Friday‘s closing cost.
Some history: NIO doesn’t own a manufacturing facility; its lorries are produced under contract by a joint endeavor with government-owned car manufacturer Jianghuai Car Group, or JAC, in a JAC-owned factory in the industrial city of Hefei, near NIO‘s head office.
NIO stated on Monday early morning that it has signed a new three-year contract with JAC to continue that plan through ( a minimum of) May of 2024. As part of the offer, JAC has accepted increase the manufacturing capacity of the manufacturing facility to 240,000 vehicles per year, or 20,000 per month— double its existing capacity. NIO Stock.
NIO and also JAC didn’t claim when that capacity increase will be in place, however the news is most likely why NIO stock is trading greater today.
Automobile investors that follow NIO stock recognize that the firm has been working considering that late in 2014 to enhance outcome at JAC‘s manufacturing facility amid fast-rising need for its fashionable electrical SUVs. The business was able to raise the production rate from around 5,000 vehicles a month to 7,500 monthly in very early January and has pushed it higher since.
At a ceremony to mark the 100,000 th NIO developed at the factory in early April, Chief Executive Officer William Li Bin claimed that the manufacturing facility can now construct concerning 10,000 NIOs per month. However, Li claimed, manufacturing has yet to hit that number as a result of an continuous international lack of auto semiconductors.
NIO stock and most various other affected car manufacturers now anticipate the chip shortage to last right into 2022, though materials are anticipated to boost somewhat in the second fifty percent of this year.