Shares of Chinese electric vehicle maker Nio Inc. NIO closed almost 2% higher in the regular session on Tuesday, extending its rally from the previous session.
What Happened: Nio’s shares rose above the $50 mark on Tuesday for the first time since early March.
The EV maker opened five new battery swap stations in Shanghai on Tuesday, CnEVpost reported, taking the total number of its battery swap stations in the country to 289. The company has significantly accelerated the pace of building swap stations in the past two weeks.
In addition, Citi increased its price target on the Nio stock to $72 from $58.30 and maintained a buy rating on the stock, citing expectations for strong growth in the company’s shipments in the second quarter as well as sequential growth in the next two quarters.
See Also: Nio Said To Plan A $31,300 EV To Increase Its China Market Share Under Separate Brand
Why It Matters: Seen as a Tesla Inc. TSLA rival, Nio is relying on service offerings to make an impact on customers in China. The company has pioneered the concept of battery-as-a-service that would allow users to rent a battery instead of purchasing one.
Nio aims to have 500 battery swap stations in operation in China by the end of this year. The ET7, Nio’s fourth mass-produced model, is scheduled for commercial launch in the first quarter of 2022
Price Action: Nio shares closed 1.9% higher in Tuesday's regular trading session at $50.34 and further rose 0.8% in the after-hours session to $50.76.
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Photo: Courtesy of Nio
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