Nio soars 14% to top $100 billion market valuation after unveiling the luxury ET7 sedan and partnering with Nvidia on autonomous driving
(Photo by STR / AFP) / China OUT (Photo by STR/AFP via Getty Images)
- Nio soared as much as 14% on Monday after it unveiled its first luxury electric sedan over the weekend, called the ET7.
- Nio also announced a partnership with Nvidia to develop autonomous driving capabilities for its vehicles.
- Monday's move higher in shares helped Nio top a market valuation of more than $100 billion.
- Following the unveiling of the ET7, JPMorgan raised its price target on Nio to $75.
- Watch Nio trade live here.
Nio soared as much as 14% to record highs on Monday after it unveiled its first electric luxury sedan over the weekend, the ET7.
The ET7 will start at $69,000 and have an estimated driving range of 620 miles on a full charge, according to the company. The vehicle also includes a suite of autonomous driving sensors and four onboard computer chips developed by Nvidia, which will offer advanced automated driving features.
Deliveries of the ET7 are expected to begin in the first quarter of 2022, according to Nio.
The move higher in Nio shares on Monday helped solidify its market valuation of more than $100 billion, making the company more valuable than legacy car behemoths like General Motors and Daimler AG.
Nio delivered nearly 43,000 vehicles in 2020, representing annual growth of more than 100%.
JPMorgan was receptive of Nio's new luxury sedan model, upping its price target on the Chinese-based EV manufacturer to $75, representing potential upside of 27% from Friday's close.
Four strategic initiatives unveiled by Nio at its Nio Day event will help the company "continue to trade more like a fast-growth technology/EV stock than a carmaker," JPMorgan said.
Those strategic initiatives include: an in-house autonomous driving solution on Nvidia architecture, solid-state battery for its new ET7 which will increase the driving range, beginning of content monetization where users pay a monthly fee for autonomous driving capabilities, and the commercialization of LiDar.
According to JPMorgan, some of the developments unveiled by Nio over the weekend are similar to the smartphone industry today, "suggesting future cars will be like smartphones with wheels."
Markets Insider