Despite the trying geopolitical environment, Chinese EV maker Nio, Inc. (NYSE:NIO) is progressing with its production plans for its ET5 sedan.
What Happened: The first tooling trial builds of Nio's ET5 sedan rolled off the production line at the NeoPark plant, the Shanghai-based company said in a statement. The NeoPark is the company's second manufacturing base after its Hefei plant, and construction work at the facility began in late April 2021.
It marked the completion of the production line at the NeoPark plant, setting it up for production validation, the company said.
"On April 29, 2021, NIO's second manufacturing base started the construction. It only took one year from ground-breaking to the TT builds of a brand-new model rolling off the production line, marking an industry-leading speed," the company said.
It will start mass production officially in the third quarter of this year.
The NeoPark is a smart EV industry park, featuring smart manufacturing, R&D and living community, and eco-cultural space.
Why It's Important: After a launch-deprived year in 2021, Nio announced three new vehicles for the current year. The company began delivering the first of the three vehicles – the ET7 sedan – in late March.
The imminent launch of the ET5 sedan and the proposed ES7 SUV will likely help boost production volume. Therefore, the update from the company assumes importance, especially as EV manufacturers in China are facing supply chain challenges.
In premarket trading Friday, Nio shares were jumping 5.49% to $17.86, according to BenzingaPro data
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