Investors in Nio (NYSE: NIO) finally getting breather as electric vehicle (EV) stock started the week solidly after falling nearly 9% last week.
At 12:30 p.m. ET on Monday, Nio was up 7.3% after rising 10.8% earlier in the day on rumors about its highly anticipated flagship luxury sedan, the ET7 Tesla (NASDAQ: TSLA).
The China-based EV company has three models: the ES8 and ES6, which are SUVs, and the EC6 coupe. It plans to launch three new models in 2022, including the ET7.
Earlier this month, Nio dropped a bombshell when it reported a sharp drop in deliveries for October, 27.5% less than last year, despite rivals still racing forward. The company said the decline was due to lower production caused by assembly line restructuring and upgrades and preparation for new product launches. Management later announced that the new products included the ET7.
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This morning, CnEVPost, a news portal focused on the New Energy vehicle industry in China, reported from Nios ET7 product manager that reservations for the sedan are expected to start in mid-January and ship out in early 2022 on the automotive website xchuxing.com the first deliveries of a few hundred ET7 units per month are planned.
In another report from CnEVPost, Nio also plans to offer solid-state battery ET7 versions and may have already signed a local supplier, the third largest power cell supplier in China, which already has over Volkswagen as customer.
CnEVPost also reported that Nio is aggressively expanding its network of battery swap stations in China to 700 by the end of the year. The Battery-as-a-Service (BaaS) program gives customers the ability to buy cars without batteries (saving up to $ 10,000) and instead subscribe to plans that allow them to recharge batteries at battery swap stations as needed and exchange.
It seems Nio is well on its way to starting sales of the ET7 in 2022 and bringing two more vehicles to market. With the completion of a $ 2 billion secondary placement on November 19, the electric vehicle maker is currently well-funded to invest in new products and capabilities.
Just this morning, Elon Musk hinted that Tesla’s flagship sedan, the Model S Plaid, could be available in China by March 2022. High cost of importing the vehicle from the U.S. In between, Nio has an excellent opportunity to equip the ET7 with high-end To bring features such as an advanced autonomous driving system and extra long range to the market.
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Nio Inc., Tesla, and Volkswagen AG. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.