Electric vehicle manufacture Nio (NYSE:NIO) stock is continuing last year’s explosive uptick for the company with the expansion of its newest technology.
The Chinese EV maker is showing its innovative prowess through the expansion of its battery swapping stations. The tech further differs the company from its counterparts across the Pacific in Tesla (NASDAQ:TSLA) and Lucid Motors. The swapping stations have allowed Nio drivers to pull up, throw a new battery into their vehicle and drive off in minutes. Not only has it cut down the charging time, but it has also allowed the company to offer its cars without batteries. This saves new customers around $10,000 on a vehicle’s sticker price.
The battery swapping stations launched back in 2014, and found great success for their convenience to the user. Now the company is seeing its tech expand further in China, thanks to an agreement between the manufacturer and state.
It turns out that Nio signed an agreement with a state-owned infrastructure company last week. The agreement will greatly expand the number of battery swapping stations in Beijing, the largest city in China and the nation’s capital. The project emphasizes not just the expansion of the stations, but increased promotion of electric vehicles by the government.
The company is planning on implementing most of these stations along the Beijing Capital Ring Expressway. The highway is one of the most heavily trafficked in the area, and stations will provide convenient pitstops for drivers.
The Bottom Line on Nio Stock
The agreement is great for already booming NIO stock, but it has brought further speculation in favor of the company. Namely, speculators predict a partnership between the vehicle manufacturer and Sinopec Shanghai Petrochemical (NYSE:SHI). This partnership could bring the battery swapping facilities into even further popularity by placing them within petroleum gas stations.
All in all, the recent news is promising for NIO stock. As of this morning, the stock is up 0.8%.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.