Chinese electric vehicle (EV) maker Nio (NYSE: NIO) made a splash over the holiday weekend by introducing some new products. Investors are showing their approval today, with a boost in Nio’s shares.

The company’s American depositary shares jumped as much as almost 10% Tuesday morning and remained higher by 9.3% as of 10:50 a.m. ET.

Nio Day impresses

At its annual Nio Day event, the company introduced its new “executive flagship” ET9 sedan. The vehicle will mark the EV maker’s first move into the ultra-luxury vehicle market. The four-seat sedan is meant to compete with Porsche‘s Panamera model and Mercedes-Benz‘ luxury S trim, according to Bloomberg.

The ET9 is expected to begin sales in early 2025. At its expected price tag of about $112,000, the ET9 would be more expensive than the Tesla Model S sedan. The ET9 is designed with each of the four seats as its own space, similar to first-class airplane suites.

But investors also see a bigger impact than what will likely be a limited market for the ET9. Nio also highlighted the in-house technology it included in the vehicle. Some of that technology will be transferrable to its other vehicles, too. Nio founder and CEO William Li noted, “Integrated with over 100 Nio full-stack technologies, Nio ET9 reaches a new height of innovation and technological development.”

Competing in the largest markets

Nio is yet to reach profitability, but some investors see that on the horizon. The case for that comes from several angles. Nio continues to ramp up production volume and is based in the largest EV market globally. Its research and development spending has led to new leading technologies. And it has expanded beyond China to several European markets.

Nio could be a stock to own in an aggressive part of a portfolio. If global growth for EVs continues, the company is in a good position to benefit and could be rewarding for long-term shareholders.

Should you invest $1,000 in Nio right now?

Before you buy stock in Nio, consider this:

Story continues

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nio wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

See the 10 stocks

*Stock Advisor returns as of December 18, 2023

Howard Smith has positions in Nio and Tesla. The Motley Fool has positions in and recommends Nio, Porsche Automobil Se, and Tesla. The Motley Fool has a disclosure policy.

Why Nio Stock Shot Higher Today was originally published by The Motley Fool