NIO Inc (NASDAQ:NIO) shares are trading higher Monday after trending lower over the last week. Here’s a look at what’s going on.
What Happened: Nio temporarily halted production of its ES6 at one of its facilities recently in order to upgrade the manufacturing process. According to a CnEVPost report citing a Chinese media publication, Nio has implemented measures to boost production following the production pause and is now producing at least 300 ES6s per day.
Nio provides production and delivery numbers on a monthly basis, which have shown a steady trend higher in the second quarter. The company noted that deliveries of its ES6 vehicle have been “growing solidly” since its debut in May. Nio is set to report second-quarter financial results before the market opens on Aug. 29.
Nio shares backed up last week after Tesla Inc (NASDAQ:TSLA) slashed prices of its Model Y vehicle by more than $1,900 in China and announced a limited-time insurance subsidy for some of its Model 3s. Just days later, Tesla lowered prices on its current inventory of Model S and Model X vehicles in China by as much as $9,600.
Lower Tesla prices are increasing pressure on competing EV makers to stay competitive on cost. The cost cuts could also be due to weakening economic conditions causing slowing demand. A range of data out of China last week showed retail sales, industrial output and broader investments were all growing slower than expected.
See Also: Tesla Swoons Amid China Price Cuts, Fisker Joins NACS Bandwagon, VinFast’s Flashy Debut Raises Eyebrows And More: Biggest EV Stories Of The Week
NIO Price Action: Nio shares were up 2.56% at $10.94 at the time of writing, according to Benzinga Pro.
Photo: courtesy of Nio.
