Nio (NYSE: NIO) stock soared this morning and was trading up a solid 9% at 10:20 a.m. ET. Nio's latest expansion plans are reassuring investors about the company's growth potential even as they realize Nio's stock price may not be hit too hard if the company makes a bold move similar to the one a Chinese stock made today. Aside from its domestic market, China, the only other market Nio has entered so far is Norway, where it first launched its SUV, ES8, in September and opened a Nio House in October last year.
NIO's investment in lithium-ion battery labs and a cell plant in Shanghai seeks to aid the R&D project in the EV space by the carmaker.
Nio (NYSE: NIO) shares had been on a bit of a roll over the last two weeks, but that run just hit a wall. Yesterday's drop came after a Chinese competitor provided its quarterly report Monday and its president warned that the second quarter has become more challenging. Nio shares continued to fall in reaction early today, lower by as much as nearly 4%.