What happened 

Shares of the Chinese electric vehicle maker Nio (NIO 3.49%) were rising today as investors processed the news that Alibaba -- China's largest e-commerce company -- is restructuring its business. The move is largely viewed by investors as a sign that the Chinese government, which has been heavy handed against tech companies over the past few years, is now softening its approach. 

Nio investors were optimistic today that less regulation for tech companies could result in a better environment for both businesses and consumers, and more growth for China's economy. As a result, the EV stock was up by 6% as of 2:50 p.m. ET. 

So what 

The Chinese government has spent the past few years cracking down on companies across the entire technology sector. The government overhauled rules for everything from online education to social media, gaming, and e-commerce, resulting in the loss of nearly $1 trillion in market value of Chinese companies. 

But the latest news that Alibaba is restructuring its company into six different units is a sign that the government may finally be finished with its strict regulations. That sentiment was boosted when Jack Ma, the CEO of Alibaba, reemerged in public for the first time in several months. Ma is the founder of Alibaba and had formerly criticized the Chinese government's financial regulations.

Nio investors are processing all of this information today and hoping that China is lifting its heavy hand on tech companies, which could not only be a boon for innovation and the economy but also indicate that the government isn't looking to expand regulations elsewhere. 

Now what

Nio's share price gains today come on the heels of an announcement made yesterday that the company is partnering with a Norwegian smart-energy company called Tibber to improve charging options for Nio owners in Europe. Shares jumped yesterday on that news as well.

Nio investors are also anticipating the company's latest delivery numbers, which could be released as soon as this weekend. The company estimates deliveries between 31,000 to 33,000 for the first quarter, representing a year-over-year increase of about 24%.