NIO Stock Fans Should Get Ready for a New Nio Phone


  • Nio (NIO) is teasing an update for the second edition of its smartphone for Innovation Day 2024.
  • The first generation of this phone came out in September 2023.
  • NIO stock closed slightly in the red today despite the news.
NIO stock - NIO Stock Fans Should Get Ready for a New Nio Phone

Source: Piotr Swat /

Would you use a smartphone from an electric vehicle (EV) producer? That’s the question that Nio (NYSE:NIO) is once again asking investors as it gears up for the second generation of the Nio Phone. After releasing the first edition of its smartphone in September 2023, Nio is poised to reveal a major update at the upcoming Innovation Day 2024.

So far, this news hasn’t done much for NIO stock. But even so, the development is worth examining, as it raises an important question. Nio certainly needs a growth-driving catalyst — but is expanding into phones the solution?

What’s Happening With NIO Stock?

NIO stock has been trending downward for months and hasn’t given investors much cause to expect a turnaround. It’s a complicated time for both the company and the EV sector. Indeed, the threat of further tariffs from the U.S. have made investors skeptical about Chinese EV stocks. And if former President Donald Trump is reelected, Nio will likely be among the most-impacted stocks if further tariffs are implemented.

As of this writing, NIO stock is down 0.11% for the day and 47% year-to-date (YTD). With that in mind, it’s clear that the market doesn’t care too much about the upcoming Nio Phone update. Shares have been volatile all day, perhaps because this phone is fairly limited in terms of what it can offer users. As CNEVPost reports:

“The Nio Phone’s main feature is its interaction with Nio vehicles, offering an action button that allows users to quickly activate more than 30 functions, including controlling the vehicle’s features such as adjusting the air conditioning temperature and switching on and off seat massage.”

For anyone who drives a Nio vehicle, a Nio phone might make sense. But for the many who do not, there’s far less incentive to purchase one. According to Reuters, prices for the Nio Phone also range between $890 and $1,030. Finally, with both the smartphone and EV markets dominated by much larger competitors, Nio faces a daunting industry landscape on both fronts.

As such, it’s unlikely that any Nio Phone developments will do much for NIO stock. Shares might see some momentum in the short term following Innovation Day 2024. But in the long run, this news probably won’t do much for the struggling EV stock.

On the date of publication, Samuel O’Brient did not hold (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 Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

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