Nio Inc – ADR (NYSE: NIO) is having a great day in the market today. However, if you’re looking for press releases or SEC filings, you’re not going to find any. Nonetheless, there is a very good reason for today’s gains. Below, we’ll talk about:
- The reason for the gains in NIO stock;
- what we’re seeing in the market; and
- what we’ll be watching for ahead.
Here’s Why NIO Is Climbing
As mentioned above, Nio is having a strong day in the market today, but the company has released no news. So, what’s the deal? Well, the company’s cars will be featured in a Formula 1 Race.
Soon, the NIO Formula 1 Team, NIO Formula E will be racing in Saudi Arabia in the first of many races to come. During the first race, drivers Oliver Tervey and Luca Felipe will be in control of the Formula 1 cars.
So, what’s the big deal?
The answer is simple. NIO seems to be following down the path that most mainstream vehicle brands have followed down as they built their empires. Racing is a sport that gets quite a bit of attention, and if NIO can place well in the Formula 1 race, it will likely lead to stronger sales. Regardless of where the company’s Formula 1 team places, it will likely lead to increased brand awareness and sales increases could follow.
NIO is also benefiting from the fact that the Chinese Government is pushing to move its consumers and businesses to electric vehicles. With Nio’s vehicles being priced in a highly competitive way when compared to other electric vehicles, many believe that the company is in the right place at the right time to take advantage of changing trends in the market.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to NIO, while the company hasn’t released any news, the anticipation of the coming race featuring the company’s Formula 1 team is exciting investors, leading to gains in the market today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:52), NIO is trading at $7.41 per share after a gain of $0.33 per share or 4.66% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on NIO. In particular, we’re interested in following the story surrounding the company’s continued work to expand the sales of its vehicles. We’ll also be watching the race to see how well the company places in its appearance in the race in Saudi Arabia. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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