Shanghai-based NIO (NYSE:NIO) and state-owned Changan Automobile announced on Tuesday a new partnership to build electric vehicles with battery swapping technology. The two companies plan to also design joint standards for battery technology. The partnership is aimed at helping NIO (NIO) improve profitability as it looks to reduce costs in the face of growing competition.
Of note, NIO (NIO) has a plan to nearly double the total number of battery swapping stations in China this year. Looking ahead, NIO (NIO) will report its Q3 financial results on December 5 before the open of the U.S. markets and hold a conference call with analysts. The consensus expectation is that the Chinese electric vehicle maker will report revenue of $2.66B and EPS of -$0.36.
Options trading implies a share price swing of 7% up or down after the earnings report drops. Shares of NIO (NIO) fell 0.65% in premarket trading to $7.75 vs. the 52-week trading range of $7.00 to $16.18.