What happened
Shares of Chinese electric-vehicle maker Nio (NIO 7.51%) were moving higher on Tuesday, after the company confirmed that it will unveil a new SUV in April. As of 11:30 a.m. ET, Nio's American depositary shares were up about 5.2% from Monday's closing price.
So what
Nio will begin shipping a new five-passenger electric SUV called the ES7 before the end of 2022, company president and co-founder Lihong Qin said at a media event in China on Tuesday.
The ES7, which will be revealed in April, will be the third new Nio of 2022 -- and the third new Nio based on the company's advanced NT2.0 platform. Its launch will follow those of the company's new flagship, the ET7 sedan revealed early last year, and a smaller sedan called the ET5 that Nio showed in December.
Nio will begin shipping its new ET7 in March. The new sedan will be followed by a smaller sedan called the ET5, and the new ES7 SUV before the end of 2022, the company's president said on Tuesday. Image source: Nio.
The ES7 will be positioned above Nio's existing five-passenger SUV, the ES6, as a roomier alternative that incorporates Nio's latest advanced driver-assist technology. It's expected to compete directly with a long-wheelbase version of the BMW X5, the X5L, that's popular in China, Qin said.
Why is the stock up today? Because Nio didn't have any new products in 2021 and lost ground to rivals, as a result. However, it now looks set for good sales growth over the next couple of years.
Now what
Electric-vehicle investors hoping for more details on the ET7 and Nio's ongoing efforts to boost its production capacity can look forward to the company's fourth-quarter and full-year earnings report, expected in late February or early March.
