Shares of Chinese electric vehicle maker Nio Inc. closed almost 2% higher in the regular session on Tuesday, extending its rally from the previous session.
What Happened:Nio’s shares rose above the $50 mark on Tuesday for the first time since early March.
The EV maker opened five new battery swap stations in Shanghai on Tuesday, CnEVpostreported, taking the total number of its battery swap stations in the country to 289. The company hassignificantly acceleratedthe pace of building swap stations in the past two weeks.
In addition, Citi increased its price target on the Nio stock to $72 from $58.30 and maintained a buy rating on the stock, citing expectations for strong growth in the company’s shipments in the second quarter as well as sequential growth in the next two quarters.
Why It Matters: Seen as a Tesla Inc. rival, Nio is relying on service offerings to make an impact on customers in China. The company has pioneered the concept ofbattery-as-a-servicethat would allow users to rent a battery instead of purchasing one.
Nio aims to have 500 battery swap stations in operation in China by the end of this year. The ET7, Nio’sfourth mass-produced model, is scheduled for commercial launch in the first quarter of 2022
Price Action:Nio shares closed 1.9% higher in Tuesday's regular trading session at $50.34 and further rose 0.8% in the after-hours session to $50.76.
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