Why Nio Stock Accelerated Today

Shares of the Chinese electric vehicle (EV) maker Nio (NYSE: NIO) hit the gas today as investors processed the news that China is implementing a tax cut for new car purchases and that the government will offer a cash subsidy for people who buy a battery-powered car. Additionally, a positive analyst's note about the company could be boosting investor sentiment.

The EV stock was up by 5.9% as of 11 a.m ET.

China's economy has been hurt by the country's strict "zero-COVID" policy, which has caused many cities and factories to shut down. To help give the economy -- and some EV companies -- a boost, the Chinese government is reportedly offering $1,500 to consumers who move from a gas-powered car to an electric one, according to Barron's.

Source Fool.com