Chinese electric vehicle maker Nio (NYSE:NIO) is attracting a great deal of attention today, amid speculation that the automaker could be preparing to enter the U.S. Although shares have since reversed course, NIO stock climbed as much as 2% in early trading. It is also a top-trending stock on Yahoo Finance and social media today.
Since U.S. EV sales are growing rapidly and Nio is seen by some as China’s version of Tesla (NASDAQ:TSLA), Nio’s move into the U.S. could greatly boost its financial results down the road. Such a development, in turn, is likely to meaningfully lift NIO stock.
Job Ads Lift NIO Stock
Today’s buzz was sparked by advertisements for U.S.-based positions that Nio recently posted on LinkedIn. Specifically, the firm has posted ads for 46 positions in America. Many of the jobs focus on managing technical operations, including software development and autonomous driving.
Among the U.S.-based positions that Nio is currently seeking are Head of Architecture & Design, Head of Power Strategy, and Audio Systems Architect. Most of the positions are based in San Jose, California.
A number of the advertisements went live a month ago, while others have been posted in recent days.
But why do investors care? Several months ago, investors determined that Nio was preparing to enter Norway based on job ads from LinkedIn.
Therefore, it’s reasonable to believe that, with the EV manufacturer posting ads for jobs in the U.S., it may be preparing to start selling its automobiles in America.
Progress in Norway and China
At the same time, Nio is making progress in its existing markets, which is likely to intrigue investors. Nio launched its ES8 sedan in Norway on Sept. 30. It’s planning to debut another electric sedan, the ET7, in the country in 2022. After Norway, Nio is expected to “gradually” enter additional markets in Europe.
In China, Nio’s sales have been growing rapidly. For example, in November, it announced that its deliveries had soared 105.6% year over year to 10,878 EVs. In the first 11 months of the year, its deliveries jumped 120.4% YOY to 80,940 EVs.
The Bottom Line
Today’s news comes amid high interest by investors in both EV stocks and Chinese stocks. EV stocks have been an area of focus as sales rapidly ramp around the world and as many governments look to incentivize EV sales in order to reduce carbon emissions.
Meanwhile, many investors have closely followed U.S.-listed Chinese stocks due to a regulatory crackdown on some tech companies by Beijing in recent months. It seems these two factors are also contributing to the interest in Nio shares this morning.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
