SBFM - Dear NIO Stock Fans Pay Attention to This HUGE Catalyst
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Nio (NYSE:NIO) stock may not be doing so hot on Tuesday but a major catalyst could turn that around.
Recent reports claim that Nio may be looking to license out its battery swapping technology. The company makes use of this in China to offer battery switches on its electric vehicles (EVs) at service stations.
The battery switching option alleviates the limited range of EVs, which is one of the biggest factors holding the market back. If Nio licenses its battery swapping tech out, that could open the way for more EV companies to make use of it and expand their businesses.
In turn, that would be a major benefit for NIO stock as the company would generate revenue from those listening deals. That means it would create an extra source of income from other companies’ success in the EV market, reports Electrek.
Hui Zhang, managing director of Nio in Europe, backs up this idea by claiming the EV company plans to license battery swapping technology. However, Nio has remained quiet when asked for any additional details about the plan.
Nio’s battery swapping model has been a success in China so far with 868 locations. Each of these hold 13 EV batteries for swapping. While the locations are more expensive to build than a charge station, they offer the benefit of convenience.
It’s also possible that Nio will start opening battery swap stations outside of China. The EV maker has been expanding further into the U.S. and Europe, which means the demand for those locations is increasing.
NIO stock is down 4.8% as of Tuesday afternoon.
There’s more stock market news to dive into below!
We’ve got all the hottest stock news traders need to know about for Tuesday. That includes everything investors need to know about Sunshine Biopharma (NASDAQ:SBFM) stock, Aterian (NASDAQ:ATER) stock, and Twitter (NYSE:TWTR) stock today. You can find all of that at the following links!
More Tuesday Stock Market News
- Why Is Sunshine Biopharma (SBFM) Stock Up Today?
- ATER Stock Alert: 7 Things to Know as Aterian Rockets Higher
- Is Twitter (TWTR) Stock a Buy Right Now?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
More From InvestorPlace
- Stock Prodigy Who Found NIO at $2… Says Buy THIS
- It doesn’t matter if you have $500 in savings or $5 million. Do this now.
- 10 Stocks Are Issuing Sell Signals
- Early Bitcoin Millionaire Reveals His Next Big Crypto Trade “On Air”
The post Dear NIO Stock Fans, Pay Attention to This HUGE Catalyst appeared first on InvestorPlace.