NIO Inc. (NIO) shares are trading higher in the premarket after the company expanded its battery swap station network in China. NIO added 40 new stations in August, bringing the total to 2,504. This growth comes despite the company’s founder suggesting a possible delay in reaching its goal of 1,000 stations by the end of 2024.
NIO, the Chinese electric vehicle maker, showcased its expansion plans for its charging and battery swap infrastructure at its Power Up 2024 event. However, despite these positive developments, the company faces significant challenges, including declining profit margins, eroding market share, and a weakening balance sheet. These factors, coupled with broader economic concerns in China, make NIO a risky investment at this time.
