Written by Cláudio Afonso | LinkedIn | X
Electric vehicle maker Nio has been granted approval to build a third factory in the Chinese province of Anhui allowing the Shanghai based brand to expand its production capacity to 1 million vehicles per year.
Nio registered 6,700 insurance registrations in China last week setting a new record, according to the latest numbers published on Tuesday by the automaker Li Auto.
According to a report by Reuters, the third plant — known as F3 — is already being built and will have an annual capacity of 600,000 vehicles as Nio prepares to start the mass production of Onvo L60, the recently unveiled model of its first subbrand.
In a statement to Reuters, Nio confirmed the start of construction for the third plant and noted that it would initially have a capacity of 100,000 units on a one-shift basis.
“The capacity of our existing plants won’t be enough to meet market demand. There is no overcapacity with Nio,” the company told Reuters.
In Europe, the company has appointed Thijs Meijling as the new Head of European Business. The move is part of a series of internal restructures the company internally announced last week, as it plans to expand into new continents, according to a memo seen by EV.
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Part of the restructuring process is also the new role of Daniel De Groot, the former Head of NIO Power Europe Business & Expansion who became, on June first, the new Head of Central, Northern and Eastern Europe Business Development Department, Global Business.
On Tuesday, China’s investment bank CICC issued a new research note maintaining the outperform rating on Nio‘s Hong Kong-traded shares wile setting a price target of $HK62, equivalent to $7.94 USD.
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In a new research note, Morgan Stanley has recently said Nio‘s record deliveries in May were “in line with raised expectations” as the firm keeps the $10 price target.
Based on the last closing price prior to the note, Morgan Stanley’s price target implies an upside potential of about 85 percent as the firm keeps the overweight rating on the shares.
Nio announced last week that has secured a significant strategic investment of 1.5 billion rmb (approximately $232.56 million) for its “Nio Power” company from Wuhan Guangchuang Fund and other investors.
Written by Cláudio Afonso | LinkedIn | X
