Nio (NYSE:NIO) stock is a hot topic among traders on Tuesday as they react to analysts suggesting the electric vehicle (EV) company may become more self-sufficient.
Analysts have latched onto news of an asset sale from Jianghuai Automobile Group as the potential reason for this. The company is a manufacturer of EVs for Nio.
The latest reports note that Jianghuai Automobile Group is selling two factories where it manufactures EVs for Nio. The company hasn’t named a buyer in this asset sale yet, but some analysts — including those at Morgan Stanley — believe that Nio may be the buyer.
Here’s what the firm’s analysts had to say about the matter in a note obtained by TipRanks:
“If NIO were to gain greater control over production, it could better mitigate the risks associated with supply chain disruptions and production hiccups in future, as well as enhancing overall operational efficiency and stability.”
While there’s no confirmation that Nio is the buyer, some sources with insider knowledge claim this is the case.
NIO Stock Movement on Tuesday
Nio investors are excited about the idea of the company buying the manufacturing factories from Jianghuai Automobile Group. That has the stock up 4.4% on Tuesday morning while about 20 million shares have changed hands. For the record, the company’s daily average trading volume is around 56 million shares.
Investors on the lookout for more of the most recent stock market stories today are going to want to keep reading!
We’re offering up all of the hottest stock market news that traders need to know about on Tuesday! Among that is what’s going on with the crypto market this morning, as well as the latest update on Overstock (NASDAQ:OSTK) stock. You can read up on these matters at the links below!
