Nio Stock Is Rising Wednesday: What's Going On?

NIO Inc NIO shares are trading higher Wednesday after China announced an extension of its new energy vehicle purchase tax exemption.

What Happened: China introduced a new 520 billion yuan ($72.35 billion) package aimed at increasing auto demand in the country, per Reuters. 

New energy vehicles (NEVs), which include battery electric vehicles, plug-in petrol-electric hybrids and hydrogen fuel-cell vehicles, purchased in 2024 and 2025 will be eligible for a purchase tax exemption of up to 30,000 yuan per vehicle. The exemptions will extend into 2026 and 2027, but the total amounts will be cut in half during those years.

The report indicates that the four year tax exemption extension came in above market expectations, which has fueled a rally in several Chinese EV stocks, including Nio. 

Nio designs, develops, manufactures and sells premium smart electric vehicles, driving innovations in next-generation technologies in autonomous driving, digital technologies, electric powertrains and batteries.

See Also: Tesla Charges Ahead In Europe As May Registrations Surge Over 2000% While Ford Falters

NIO Price Action: Nio shares were up 2.67% at $9.60 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Nio.