Several factors converged this week to make Chinese vehicle manufacturer Nio (NIO 1.86%) a popular stock in the somewhat battered electric vehicle (EV) sector. Almost unarguably the major one was the announcement of a new vehicle, although Tesla's (TSLA 3.49%) latest stumbles also played a role.
It was an eventful few days for Nio, and since these developments were positive the stock rose. It ended the week more than 12% higher in price, according to data compiled by S&P Global Market Intelligence.
Now rolling out of the factory...
That new model is the ONVO L90, the rollout of which Nio incorporated into a press release touting the production of its 800,000th vehicle. The company described the ONVO L90 as a product that "redefines the family oriented three-row electric SUV."
Image source: Getty Images.
It is to be made available for delivery starting Aug. 1 in Nio's native China, and it will retail for the equivalent of $27,000 for a battery-as-a-service version and $39,000 for a complete model.
The introduction of a new vehicle by a carmaker is always attention-grabbing, and often happy news for investors.
Timing mattered with this announcement, as it contrasted with Tesla's fairly grim second-quarter results. The American company, still the global flag-bearer for EVs, reported double-digit falls in revenue, deliveries, and profitability for the period.
A serious up-and-comer
Nio is doing a fine job leveraging its advantages, such as the Chinese government's zeal for next-generation transport solutions, and its growing presence in an economy that is still on the rise (albeit not as powerfully as it was several years ago). Investors, I believe, were right to be cheered by the company's upcoming rollout.
