Why NIO Shares Are Gaining Tuesday?
NIO Inc.’s (NYSE:NIO) shares are trading higher on Tuesday.
The company’s office campus in Shanghai reportedly received a visit from Xiaomi Corp. (OTC:XIACY) founder, chairman, and CEO Lei Jun to check out the L60, the first model from NIO’s sub-brand Onvo.
Nio’s founder, chairman, and CEO William Li disclosed the news today on Douyin, China’s TikTok equivalent, with a video showcasing him and Lei Jun beside an Onvo L60, CnEV Post reported.
Later on Weibo, Lei stated that he led his team to visit Nio’s Li to express gratitude for his assistance in the launch of Xiaomi’s debut model, the SU7, the report added.
Additionally, as per local automotive media outlet Auto Home, a delegation from Xiaomi’s car-making division, Xiaomi EV, comprising Hu Zhengnan (Head of Vehicles), Yu Liguo (Head of Product), Li Xiaoshuang (Head of Marketing), and Huang Zhenyu (Head of Supply Chain), accompanied Lei during his visit to Nio and examined the L60, CnEV Post added.
However, neither Li’s short video nor Yiche’s report provided additional details regarding Lei’s visit, the report read.
Reportedly, Lei proposed a unified in-vehicle ecosystem concept during a meeting attended by Nio’s Li and Onvo President Ai Tiecheng, as seen in a leaked video obtained by CnEV Post.
Lei’s initiative was interpreted as an attempt to integrate Xiaomi ecosystem products into interiors of other brands’ vehicles, not solely Xiaomi EV models, the report stated.
Xiaomi introduced the SU7, a rival to Tesla, Inc.’s (NASDAQ:TSLA) Model 3, on March 28, aiming to deliver 100,000 units in 2024.
Nio debuted its Onvo sub-brand on May 15, unveiling the L60, a competitor to Tesla’s Model Y.
According to Benzinga Pro, NIO stock has fallen over 41% in the past year. Investors can gain exposure to the stock via KraneShares MSCI China Clean Technology Index ETF (NYSE:KGRN) and Invesco Golden Dragon China ETF (NASDAQ:PGJ).
Price Action: NIO shares are down 1.05% to $5.17 at last check Tuesday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy of Nio.