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NIO Stock Edges Higher Premarket After Renewing Joint Manufacturing Agreements

Sam Boughedda trader
Updated 24 May 2021

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A Nio Car

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.

Should You Invest in NIO Shares?

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

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.