The Chinese electric vehicles manufacturing firm Nio Inc (NYSE:NIO) saw its stock record gains of as much as 5.5% on Monday following a key announcement.
The company announced yesterday that an agreement has been reached with its manufacturing partner, by way of which the latter is going to raise its capacity by 100%. It is a major development considering the fact that if production is actually doubled then NIO is going to produce 240000 vehicles a year.
NIO does not actually have a car manufacturing factory of its own. The company went into a joint venture with the state owned car maker Jianghuai Automobile Group for manufacturing the actual cars. The factor, owned by JAC, is situated in Hefei and not far from the corporate headquarters of NIO. Yesterday, NIO also pointed out that a new three year agreement has been signed with JAC to continue the collaboration up until 2024.