Nio (NYSE:NIO) stock was trading higher on Tuesday as rumors circulated that the Chinese electric vehicle (EV) maker was looking to expand into American markets.
Those rumors were sparked by a since-deleted LinkedIn job posting first reported by Deutsche Bank analyst Edison Yu. The listing included formulating “an action plan to enter the U.S. market” among the job responsibilities.
Today’s bullish trading is more of the same for NIO, which was likewise up in trading yesterday. That bullish price action was in response to a company announcement that it would be increasing its stake in Nio China.
$NIO from Edison Yu at DB. Linkin job posting for U.S. expansion pic.twitter.com/AAepHs0nEG
— Allen Root (@DowJonesAl) February 9, 2021
While some investors speculate that this could be leading to Nio China going public, an unnamed Nio executive told China Securities Daily the investment was simply Nio bullishly betting on its own business.
InvestorPlace’s Bret Kenwell wrote yesterday that “the trends remain bullish but the valuation makes no sense” when it comes to NIO stock. Kenwell sees this stock as blatantly overvalued, but said it was consolidating for a move higher regardless.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.
