NIO Jumps 37% After Pact With Intel on Driverless Car Technology
Troubled Chinese electric-car maker NIO Inc. surged 37% after striking a deal with Intel Corp.¡¯s Mobileye that aims to bring driverless vehicles to China and other markets. NIO added 63 cents to close at $2.34 in New York on Tuesday for its biggest intra-day gain since September 2018. Before the surge, NIO had tumbled 73% since its U.S. IPO last year as the company struggled with faltering demand, funding requirements and executive departures.
Under the agreement, NIO will mass-produce a self-driving system designed by Mobileye, and install the technology into its electric vehicles. The first target market will be China, NIO said in a Nov. 5 statement.
NIO has been hit by sputtering electric-car demand in China just as the upstart is working to break into the world¡¯s biggest market for battery vehicles. The company lost its finance chief last week and is raising $200 million from founder William Li and a Tencent Holdings Ltd. affiliate, and also plans to spin off some businesses and reduce jobs. Tuesday¡¯s stock gain left NIO with a market capitalization of $2.46 billion, compared with the $57.2 billion market value of larger rival Tesla Inc.
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