Why Is Nio (NIO) Stock in the Spotlight Today?

Nio (NYSE:NIO) stock is on many investors’ radar today after the company said that it would slowly restart manufacturing its electric vehicles because supply chain difficulties had eased. On Saturday, the Chinese automaker announced that it had halted production of its EVs. Nio took that action because a number of its suppliers had suspended their operations due to lockdowns in the wake of a Covid-19 outbreak.

A Nio (NIO) sign and logo on a tan concrete building.
Source: Sundry Photography / Shutterstock.com

Yesterday, Nio stock and the shares of many other electric vehicle makers outperformed after Beijing relaxed the lockdowns that it had imposed in Shanghai. Nio rose 4.9% to $20.42, while Li Auto (NASDAQ:LI) advanced 4.4% to $26 and Tesla (NASDAQ:TSLA) advanced 3.6% to $1,022.

What Is Happening With NIO Stock

Nio announced on April 10 that it would raise the prices on three of its EV models by about $1,500 each in response to rising component prices.

In a recent column on NIO stock, InvestorPlace contributor Faizan Farooque noted that the automaker had raised its prices after its battery costs had risen. Stating that Nio has tremendous potential “and [will] become a great investment,” Farooque reported that UBS had recently upgraded the shares to “buy” from “hold.” The firm is also upbeat on three new EVs that the company is going to start selling.

Also worth noting is that Nio is reportedly looking to allow other automakers to utilize its battery swap stations in exchange for licensing fees.

In pre-market trading today, NIO stock was falling slightly to $20.32. The shares are well below their 52-week high of $55.13.

On the publication date, 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.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.

Article printed from InvestorPlace Media, https://investorplace.com/2022/04/why-is-nio-nio-stock-in-the-spotlight-today/.

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