Send me real-time posts from this site at my email
Motley Fool

Why Nio Shares Jumped Monday

What happened

The electric vehicle sector is in focus for investors today, and that has the American depositary shares of Chinese EV maker Nio (NYSE: NIO) surging. As of 11:50 a.m. EDT, Nio shares were at session highs up almost 5%.

So what

Over the weekend, Chinese competitor XPeng made some announcements about its autonomous technology that got investors excited. Investors have pushed XPeng shares more than 10% higher on the news. And Tesla also had several items of good news Monday morning that has its shares moving higher. Nio hasn't come out with any specific announcements, but seems to be moving in sympathy today as investors feel it has similar prospects to its peers.

Nio ET7 showing aerodynamics. Image source: Nio.

Now what

What's good for the EV sector is likely good for Nio. And with XPeng releasing updates for its semi-autonomous driving technology, investors likely look forward to seeing what's next from Nio. At its Tech Day over the weekend, XPeng launched the newest version of its advanced driver-assistance system, and it included a feature for autonomous city driving, as reported by CNBC.

Nio has already launched its semi-autonomous Navigate on Pilot system which will compete with Tesla, and now XPeng. Nio says its system can also be used in the city in addition to highways. It also adjusts speed based on speed limits, and switches lanes based on road conditions.

Investors are looking forward to the release of the company's new ET7 sedan and its assisted driving features early next year. With peer XPeng generating excitement over the weekend, and Tesla fans cheering a price raise and large 100,000 vehicle order from a rental car business, Nio investors seem to be bringing its shares along for the ride today.

10 stocks we like better than NIO Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and NIO Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of October 20, 2021

Howard Smith owns shares of NIO Inc. The Motley Fool owns shares of and recommends NIO Inc. and Tesla. The Motley Fool has a disclosure policy.


Source

Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue