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Nioh (New York Stock Exchange:NIO) has made great strides in battery replacement technology. Chinese electric vehicle (EV) manufacturers have been working on this initiative throughout the year. As of July 2023, the company had installed 1,564 battery swapping stations in China, and that number has since grown to over 2,000.
Nio has now announced a partnership with the same Chinese automaker. Changan Automobile Develop more EVs with battery swapping capabilities. After two difficult quarters, NIO stock could certainly be a new catalyst for growth. So far, stock prices haven’t reacted much to this news. But the partnership could ultimately signal the turnaround Nio needs to continue to capture share in China’s burgeoning EV market.
Given the recent decline in NIO stock, is now the time to buy on the dip before this new initiative leads to a rebound in the stock price? Let’s take a closer look at this recent development to assess what investors should expect.
What’s happening with NIO stock?
NIO stock initially fell this morning, but appears to be on an upward trajectory. As of this writing, the stock is still down 4% on the day, but is now inching up. This is a natural reaction to today’s news, as if Nio doesn’t run into any further problems, advances in battery replacement could save the company money and ultimately turn a profit.as Reuters Report:
“The partnership is a long-term move for Nio to reduce its workforce, improve efficiency and reduce costs in the face of increased competition that began after U.S. automaker Tesla first began a price war. The aim is to help improve profitability by deferring investments” this year. “
Partnering with companies like Changan Automobile is a good step towards these goals. Although the company is a state-owned company, it is a prominent original equipment manufacturer (OEM). A pioneer in the world of EV battery replacement, his NIO has expanded its empire across China and even into Europe. Battery replacement has the potential to increase EV adoption by addressing range concerns, which is likely to be attractive to electric utilities. This puts Nio in a great position to further expand its reach and corner this important section of the market through this partnership.
There’s no timeline yet for when investors can expect this joint venture to start seeing results, but investors should be careful to look at the big picture when it comes to NIO stock. The company is working hard to support the arrival of an important new phase in EV technology, which could be a winner when battery swapping technology becomes widespread.
road ahead
It’s true that NIO stock has struggled significantly this year, making some investors cautious. However, Wall Street analysts remain generally bullish on the company and support its cost-cutting efforts. investor place Contributor Steve Booyens also sees things improving in 2024, arguing that “fundamental changes are occurring” as Nio stands as an undervalued growth player.
This prediction will likely prove correct if the battery replacement partnership with Changan begins to bear fruit easily next year.
On the date of publication, Samuel O’Bryant did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.