Tariff news has been dominating the discussion in many industries this week, but maybe none more so than in the global automotive sector. That will also likely be the case at the 2025 Shanghai Auto Show that kicked off this week.
Electric vehicle (EV) makers in particular are paying attention to what a trade conflict between the United States and China could mean for the world's largest automotive market. It is against that backdrop that shares of Chinese EV maker Nio (NIO +6.67%) are soaring this week. The stock has jumped by about 16% this week as of Thursday afternoon, according to data provided by S&P Global Market Intelligence. Shares have now gained 35% just since April 8.
Nio showcases new brands
Global tariff news have helped support the stock. Trade between the U.S. and China has virtually halted for the time being, and that has given Chinese domestic automakers an advantage in their home market. American automakers like General Motors have been reporting strong growth for EV and hybrid sales in China. But rising tariff barriers are now affecting its joint ventures in the country, making it difficult to import some components.
NYSE: NIO
Key Data Points
That provides an opening for names like Nio. At the same time, it is showcasing its newest brands, Onvo and Firefly, at the Shanghai show this week. CEO William Li told reporters that it was the first time each of its three brands were collectively represented at the show.
The flagship Onvo L90 SUV also made its debut there. China's big auto shows are typically where EV makers showcase new technologies highlighting better-performing EVs at lower and lower prices. Li also said at a press conference that the newest Firefly brand will be sold in at least 16 overseas markets eventually.
That could considerably increase the market for Nio with what it calls its "small smart electric high-end cars." That potential growth has investors boosting Nio shares this week.
