Shares of NIO (NYSE: NIO) have been trending down in concert with other U.S.-listed Chinese stocks over the past several days. The stock rebounded early Friday after the company held its Power Day 2021 event, jumping more than 3%, but that bump didn't last, and shares were trading 1.2% below Thursday's close as of 11:15 a.m. EDT on Friday.
Known mostly for its electric vehicles (EVs), NIO also has an automated battery-swapping service for customers not wanting to wait for EV batteries to recharge. NIO says a battery swap can take just three minutes. The company currently has about 300 swapping stations, but it aims to have 4,000 globally by 2025, Reuters reports. The news likely explains the early gains in the stock, but there also may still be overhang from investors concerned about the Chinese government cracking down on U.S.-listed companies.
NIO battery swapping and charging stations. Image source: NIO.
NIO has previously announced it will begin selling its EVs in Norway this fall, its first market outside of China. In a bid to also grow revenue from its battery swapping service, NIO said that it expects to establish its swapping stations in Norway by the end of 2022.
At its Power Day event today, NIO said it expects to more than double its current number of swapping stations just by the end of this year. The company hopes the swapping option will help relieve range anxiety and drive more customers to EVs. The stock bounced around today, but in the long run, adding more sources of revenue should be positive for long-term shareholders.
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