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Why NIO Stock Is Up Today

By John Rosevear - Jun 28, 2021 at 11:19AM

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NIO Power Day is coming soon. But what does it really mean?

What happened

Shares of Chinese electric-vehicle maker NIO (NIO 0.90%) were moving higher on Monday, after the company said it will hold a "NIO Power Day" event next month. "NIO Power" is the company's name for its suite of vehicle-recharging products and services.

As of 11 a.m. EDT, NIO's American depositary shares were up about 6.7% from Friday's closing price.

So what

Chinese electric-vehicle news outlet CnEVPost reported that NIO has begun inviting China-based journalists to NIO Power Day on July 9. The NIO Power "service," as the company calls it, includes NIO's charging network, its fast-growing network of battery-swap stations, and related services including home chargers and "mobile charging cars" that can assist stranded NIO owners. 

The event will commemorate the third anniversary of NIO Power's launch, the company said. 

Is that why the stock is up today? 

A blue NIO ES8, a large electric luxury SUV, inside one of the company's automated battery-swap stations.

The NIO Power offering includes the company's fast-growing network of automated battery-swap stations. Image source: NIO.

Now what

Electric-vehicle investors have become accustomed to companies using big-day events to unveil new products and services, but I'm not completely sure the excitement is warranted in this case. NIO has said that it is accelerating the rollout of its new-and-improved battery-swap stations, and we might see updates on that front; but I'm not (yet) expecting big news from the July 9 event.

As of right now, I think investors hoping for big news from NIO will probably have to wait until NIO reports its second-quarter results, likely in early to mid- August. 

John Rosevear has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends NIO Inc. The Motley Fool has a disclosure policy.

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