Shares of Nio (NIO) stock has surged over 8% during trading hours. Shares were moving higher on Monday, after the company said it will hold a “NIO Power Day” event next month. “NIO Power” is the company’s name for its suite of vehicle-recharging products and services.
Chinese electric-vehicle news outlet CnEVPost reported that NIO has begun inviting China-based journalists to NIO Power Day on July 9. The NIO Power “service,” as the company calls it, includes NIO’s charging network, its fast-growing network of battery-swap stations, and related services including home chargers and “mobile charging cars” that can assist stranded NIO owners.
The event will commemorate the third anniversary of NIO Power’s launch, the company said.
Electric-vehicle investors have become accustomed to companies using big-day events to unveil new products and services, but I’m not completely sure the excitement is warranted in this case. NIO has said that it is accelerating the rollout of its new-and-improved battery-swap stations, and we might see updates on that front; but I’m not (yet) expecting big news from the July 9 event.
As of right now, I think investors hoping for big news from NIO will probably have to wait until NIO reports its second-quarter results, likely in early to mid- August.
Tesla (TSLA) recalls over 100k vehicles for safety concerns
The problem, according to Chinese regulators, is that the system can be accidentally activated in certain models, resulting in unintended acceleration. The recall includes 35,665 imported Model 3 vehicles and 249,855 Model 3 and Model Y vehicles made at the Shanghai plant, or almost every single locally made car that Tesla has sold in China since January 2020.
And the setback isn’t as damaging as a conventional recall, since it can be resolved through a software update that doesn’t require customers to return their cars, still, the scale of the problem is a “black eye” for Tesla, according to Daniel Ives, a managing director of equity research at Wedbush Securities, who noted that the announcement comes after a string of controversies for the carmaker.