Shares of Nio (NIO) saw it’s stock price rise from $58 to $65 in pre hours trading. This signals that Nio Day was a success. The company also partnered with Nvidia (NVDA) for it’s autonomous driving technology, NVDA’s shares saw 4% increase to $553 at the time of writing.
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.
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.”