NIO Shares Rise as New Factory Construction Begins and Chewy Shares Fall Despite Earnings Beat
On Friday, shares of NIO jumped, closing up 6.83%.
Shares of the Chinese electric vehicle manufacturer rose after the company’s founder, and CEO announced it had begun constructing its new factory in the Chinese industrial city Hefei. The new factory will be operated by NIO’s manufacturing partner, Jianghuai Automobile Group, a state-owned automaker.
According to William Li, the CEO and founder of NIO, the new facility will start production in the third quarter of 2022. It will expand NIO’s available manufacturing capacity to around 20,000 vehicles per month once it is up and operating, up from a maximum of 10,000 today.
Shares of NIO have fallen 6% this year.
On Friday, shares of Chewy fell, closing down 5.81%.
Shares of the American online pet supply retailer fell despite the company posting better than expected earnings late Thursday.
The company reported a net income of $0.09 per share or $38.7 million, beating Wall Street’s expectations of a loss of $0.03 per share. Revenue was $2.14 billion, up 32% from the same period a year ago. The street anticipated revenue to be $2.12 billion. Chewy said revenue for the whole year is expected to be in the $8.9 billion to $9 billion range.
Shares of Chewy are down over 15% this year.
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