Why Nio Stock Jumped Wednesday
Shares of Chinese electric vehicle maker Nio (NYSE: NIO) have had positive momentum for more than a week now, and that has continued today. As of 11 a.m. EDT, Nio shares had gained 3%. Since Oct. 4, the stock is up more than 9%. There are both company-specific as well as more general reasons related to its business that help explain the move.
Last week, Chinese electric vehicle and battery maker BYD, which is one of Warren Buffett's Berkshire Hathaway portfolio holdings, announced plans to collaborate with a fleet-as-a-service solutions joint venture to deploy up to 5,000 new EVs to fleet managers in the U.S. And yesterday, news came that global EV leader Tesla had produced a record volume of electric vehicles at its Shanghai factory in September, with the majority of those sales remaining in China. Both items bode well for the growth of Nio's business.
Source Fool.com
