Nio To Announce Norway Expansion Plan On May 6 - What You Need to Know

NIO Inc. (NYSE: NIO) has finally confirmed its long-awaited European expansion plan, and in reaction, the stock is higher in premarket trading.  What Happened:  Chinese EV manufacturer Nio said in a tweet from its official handle that its global vision is gaining even greater focus with its presence in Norway. 

It will mark the company's first foray into the highly competitive European market. The company also indicated that a press conference is scheduled for 4 AM ET on Tuesday, May 6.

NIO's global vision is coming into even sharper focus with our presence in Norway. Tune in for our #NIONorway Press Conference on May 6th at 10 AM CET/1 AM PDT https://t.co/E1DP2NxS6t pic.twitter.com/EebjI8WDOf

— NIO (@NIOGlobal) April 28, 2021

Local Chinese media outlets have long been speculating an imminent announcement regarding Nio's international expansion plans.

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Nio's Global Vision:  Nio has always had a strong global vision, having established a design team in Munich, Germany, and an advanced research and innovation center in Silicon Valley, California, the company said in a blog post. 

The company's vision of becoming an even stronger worldwide brand for electric vehicles is now coming into focus with its presence in Norway, it added.

Nio already has a strong European presence, with its global design center in Munich, Germany and its advanced engineering R&D center in Oxford, England, and its racing team.

Why It's Important:  Nio is a well-acclaimed premium EV brand in China. Thanks to its strong execution and vision, it has captured significant mindshare and market share in the highly competitive Chinese market. 

The company's quest to get into Europe, with Norway as the first stop, therefore it seems logical to scale up and expand volumes.

Nio's domestic rival XPeng Inc. (NYSE: XPEV) has commenced exporting its cars to Europe in late 2020.

Earlier, reports had suggested the first showroom will likely come up in the Norwegian capital of Oslo in September. The company has reportedly hired Marius Hayler, the head of Tata-owned Jaguar Land Rover in Norway, as CEO of Nio Norway, although Hayler's LinkedIn profile doesn't reflect the same. 

See also: How to Buy Nio Stock

Job postings by Nio on its LinkedIn account have confirmed that the company is scouting for talent to help with its European operations.

Nio is scheduled to report its first-quarter results Thursday, after the market close. The company's earnings call, scheduled for 8 PM, may shed more light on the European expansion plan.

Price Action: In premarket trading Wednesday, Nio's shares were up 0.22% at $41.30. 

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Image Courtesy: Wikimedia