Chinese electric vehicle (EV) maker Nio (NYSE: NIO) made a splash over the holiday weekend by introducing some new products. Investors are showing their approval today, with a boost in Nio’s shares.
The company’s American depositary shares jumped as much as almost 10% Tuesday morning and remained higher by 9.3% as of 10:50 a.m. ET.
Nio Day impresses
At its annual Nio Day event, the company introduced its new “executive flagship” ET9 sedan. The vehicle will mark the EV maker’s first move into the ultra-luxury vehicle market. The four-seat sedan is meant to compete with Porsche‘s Panamera model and Mercedes-Benz‘ luxury S trim, according to Bloomberg.
The ET9 is expected to begin sales in early 2025. At its expected price tag of about $112,000, the ET9 would be more expensive than the Tesla Model S sedan. The ET9 is designed with each of the four seats as its own space, similar to first-class airplane suites.
But investors also see a bigger impact than what will likely be a limited market for the ET9. Nio also highlighted the in-house technology it included in the vehicle. Some of that technology will be transferrable to its other vehicles, too. Nio founder and CEO William Li noted, “Integrated with over 100 Nio full-stack technologies, Nio ET9 reaches a new height of innovation and technological development.”
Competing in the largest markets
Nio is yet to reach profitability, but some investors see that on the horizon. The case for that comes from several angles. Nio continues to ramp up production volume and is based in the largest EV market globally. Its research and development spending has led to new leading technologies. And it has expanded beyond China to several European markets.
Nio could be a stock to own in an aggressive part of a portfolio. If global growth for EVs continues, the company is in a good position to benefit and could be rewarding for long-term shareholders.
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Why Nio Stock Shot Higher Today was originally published by The Motley Fool