NIO (NIO.US) stock surged more than 10% after the Chinese electric vehicle maker’s CEO William Li announced that the company may decide to start producing mass-market vehicles under a different brand name, however no further details were provided. Investors also welcomed the launch of its new ET7 sedan, which will compete with Tesla’s (TSLA.US) Model 3. The ET7, is equipped with a larger 150 kWh battery pack which provides a driving range of 621 miles while the standard Tesla Model 3 has a range of only 261 miles and the long-range version has a claimed range of 353 miles. However, greater range comes with a higher price. NIO's ET7 will start at 448,000 yuan ($ 69,100), while the entry-level Tesla Model costs 265,740 yuan.
The new sedan will be available in early 2022 which is good news for the company as the Chinese EV market is expanding quickly. In the last quarter of 2020 NIO delivered a record number of 17,353 vehicles -- twice as many as the year before, while its rivals from China - Li Auto and XPeng also broke their delivery records. In the same period, China's largest EV producer BYD, in which Warren Buffett has invested, sold more than 77,000 vehicles. Tesla sold 120,000 of the cars in China last year.
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NIO's (NIO.US) stock launched today's session higher however price pulled back slightly after reaching a fresh all-time high at $67.00. Currently stock is testing the upper limit of the ascending parallel channel. Should a break below occur, deeper correction may start. Nearest strong support lies at $56.25 level. However as long as the price sits above the lower limit of the channel, continuation of an upward trend seems probable. Source: xStation5
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