Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
NIO's (NYSE: NIO) share price is trading slightly higher premarket on Monday after the company announced it has renewed manufacturing agreements with Jianghuai Automobile Group (JAC) and Jianglai Advanced Manufacturing Technology (Anhui).
JAC is a state-owned vehicle manufacturer in China that currently manufactures the ES8, ES6 and EC6, in the Hefei JAC-NIO manufacturing plant.
Jianglai is a joint venture established or operation management by JAC and NIO, with NIO holding a 49% equity interest.
The agreement will see JAC continue to manufacture the ES8, ES6, EC6, ET7 and potentially other NIO models in the pipeline.
NIO said JAC will expand its annual production capacity to 240,000 units to meet the growing demand for its vehicles.
NIO will control vehicle development and engineering, supply chain management, manufacturing techniques, and quality management and assurance. Jianglai will be responsible for parts assembly and operation management.
NIO's share price is up 1% at $34.40 premarket.
The rise of Tesla has seen investors flock to electric vehicle stocks. NIO is considered Tesla's biggest rival in China. So, is buying NIO stock one of the best electric vehicle plays right now?… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best electric vehicle stocks to buy right now
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .