Nio (NYSE:NIO) stock has an exciting new catalyst on the horizon. The Chinese electric vehicle (EV) producer has announced that its plans for a network of battery swap stations are on the right track. In fact, it’s moving along at a faster pace than expected. Benzinga reports that ten third-generation battery swap stations will go online on March 28, 2023. This is an important step forward as the company tried to recover from a difficult start to the year that has left NIO stock in the red.
However, news of this positive development has sent shares up today as Nio sets its sights on helping secure a larger share of the booming EV charging market.
What’s Happening With NIO Stock
After a difficult month, NIO stock has been rising steadily for the past week. As of this writing, it is up 5% for the day, and while it has lost some slight momentum, it could easily reverse this direction at any time. After a difficult 2022, this type of progress is precisely what investors want to see from Nio. The company spent last year battling significant macroeconomic headwinds, including China’s Zero Covid policies. Shares fell considerably, but Nio is out to prove that it can still compete in the EV race.
Providing a network of innovative power solutions is an excellent way to do that. CnEVPost reports that Nio’s “third-generation battery swap station increases the daily service capacity of a single station to 408 times, a 30 percent increase over the second generation.” The company has also incorporated lidar technology and Orin chips produced by Nvidia (NASDAQ:NVDA) into its new stations, bringing their total computing power to 508 Tera Operations per Second (TOPS).
InvestorPlace contributor Muslim Farooque notes that this new battery swap station network isn’t the only reason to bet on NIO stock. But it is undoubtedly an important one, particularly as the company is breaking ground on this endeavor earlier than expected. It has also raised its goal from 400 swap stations by the end of 2023 to 1,00. Shares will likely rise as the network is built, giving buyers a new incentive to purchase a Nio EV and giving investors a new reason to trust the company’s growth prospects.
On the date of publication, Samuel O’Brient 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.