Nio (NIO) is expected to unveil a new electric car another key technologies at its annual event Saturday. Nio stock topped a buy point Friday.




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The Chinese rival to Tesla (TSLA) has promised to reveal its first electric sedan at its Nio Day. Its existing lineup of three electric utility vehicles saw sales explode in 2020, more than doubling year over year.

The new Nio electric car will take on Tesla’s made-in-Shanghai Model 3, BYD‘s (BYDFF) Han and Xpeng‘s (XPEV) P7. Those premium new electric sedans drove 2020 sales for their makers in China, the world’s biggest car market.

Nio’s new electric car is expected to feature its latest autonomous driving technologies and a bigger 150 kWH battery pack. That will be the biggest battery pack Nio has ever offered, with a reported range of 370 miles to 500 miles on a single charge.

In addition, Nio has teased updates on other core technologies and an improved, lower-cost swap station. Subscribers to Nio’s new battery service can swap out car batteries in under five minutes at swap stations rather than recharge electrical vehicles at an outlet, saving time.

In a recent note, Deutsche Bank analyst Edison Yu said he expects Nio’s self-driving technology to include lidar sensors, which help cars to “see” objects on the road. He projects Nio’s new sedan will be a mid- to full-size sedan, target the premium end of the market, and enter production by year end.


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Nio Stock, Chinese EV Stocks

Nio stock jumped 7.6% to 58.40 in Friday’s stock market, clearing a 57.30 buy point from a cup base. Among other Chinese EV stocks, Li Auto (LI) lost 0.3%, Warren Buffett-backed BYD rose about 1%, and Xpeng gained 2.5%. XPEV stock offers an entry off support at the 10-week line. Meanwhile, Tesla rose nearly 7%, near 872, and is far extended from a 466 buy point.

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If Nio announces lidar-based autonomous technology, it would follow other recent moves in the space. Xpeng recently announced a partnership with lidar company Livox to use the technology in “a new 2021 production model.” The new IPO also has teased a new electric sedan.

Plus, lidar stocks like Velodyne (VLDR) and Luminar Technologies (LAZR) rallied last month on a report that Apple (AAPL) could make a self-driving car by 2024 using the technology.

Meanwhile, lidar maker Ouster also said last month it will go public via a merger with blank check company Colonnade Acquisition (CLA).

Find Aparna Narayanan on Twitter at @IBD_Aparna.

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