Nio, Inc. NIO shares are trading at their lowest level since September 2020, and investors and analysts expect the product launches scheduled for the year to act as positive catalysts for the stock.
The Chinese EV startup appears to be on track to release its ET7 sedan by the scheduled time, and this suggests better days may be ahead for Nio stock.
What Happened: Nio began allowing test-driving of its ET7 sedan on Saturday, keeping up with the schedule, CnEVPost reported. Customers at the Nio House located at the company's Nio-JAC joint venture manufacturing base in Hefei were the fortunate ones to get an opportunity to test drive Nio's flagship sedan.
Preference was given to reservation holders over potential customers, the report added.
Those who took the test drive were left impressed with the sedan's acceleration and performance, the report said, citing the company.
Nio will reportedly allow 300 test drives per day, beginning on Monday, and hopes to increase the number to 1,000 shortly thereafter. The vehicles currently used for test-driving are almost ready for delivery and before the start of deliveries an upgraded version of the software has to be installed, the report said, citing Nio's co-founder and president Qin Lihong.
Related Link: What Nio Investors Should Know About Imminent Hong Kong IPO: Secondary Listing, No Stock Sale, Singapore Plans And More
Why It's Important: Nio had earlier said production of the ET7 reserved for customers who have paid deposits will start on March 11. Deliveries are expected to start on March 28.
Nio debuted the ET7 sedan at its Nio Day 2020, held in January 2021, and at the 2021 Nio Day conducted in December 2021, the company provided additional updates. During production, the company added over 20 new features, over and above of what was announced in January 2021.
Credit Suisse analyst Bin Wang expects Nio's sales volume to jump 64% year-over-year to 150,000 units in 2022, thanks in part to the ET7 sedan.
Nio closed Friday's session down 6.29% to $18.63.
Photo: Courtesy of nio.com
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