Shares of Chinese electric vehicle startup Nio, Inc. (NYSE:NIO) saw a boost in premarket trading on Wednesday.
The stock gained momentum following China’s announcement of an extension to the new energy vehicle purchase tax exemption until 2027. China’s Ministry of Finance confirmed that this extension would remain in effect until the end of 2025, with a maximum cap of 30,000 yuan ($4,169) per vehicle.
Furthermore, the government revealed that from 2026 to 2027, a reduced tax rate of 50% would apply to NEV purchases, with a maximum limit of 15,000 yuan per vehicle. These incentives are expected to benefit domestic players, particularly Nio, which utilizes battery-swapping technology, enabling separate invoicing for the vehicle and battery prices.
On Tuesday, Nio also announced a significant investment of over $700 million from CYVN Holdings, a fund owned by the Abu Dhabi government. In premarket trading, Nio rose 1.93% to $9.53, according to Benzinga Pro data. XPeng, Inc. (NYSE:XPEN) and Li Auto (NASDAQ:LI) rallied 2.21% and 3.50%, respectively.
See Also: Best Chinese Stocks
