Tesla and NIO
Tesla (TSLA) started December on a positive note. As of December 4, the stock had risen 2.6% despite 2.2% losses in the S&P 500 index. Today, TSLA is extending these gains. It was trading with 0.9% gains at 2:22 PM EST against 1.5% losses in the S&P 500 index. At the same time, Tesla’s Chinese peer NIO (NIO) was up 2.3%. However, NIO has lost 8.2% in December so far.
Why are TSLA and NIO rising?
A recent Reuters report suggested that Tesla is speeding up the construction of its Gigafactory in China. Citing some sources and documents, the report stated, “Tesla Inc has opened a tender process to build its Shanghai Gigafactory and at least one contractor has started buying materials.” Its upcoming Shanghai-based Gigafactory is likely to help the company save on the steep tariffs that it’s paying right now. Tesla pays 40% tariffs in China currently, which could be one factor helping it defy the market sell-off today.
On the other hand, NIO is set to launch its upcoming five-seater ES6 car on December 15. Investors’ high expectations for the vehicle (XLY) could be helping the stock, especially after the company reported solid growth in its seven-seater ES8 vehicle deliveries for November.