Nio Inc – ADR (NYSE: NIO) shares have crossed the $2 threshold level for the first time since late September after the Chinese electric vehicle maker announced an agreement Tuesday with Intel Corporation's (NASDAQ: INTC) Mobileye.
'The First Of Its Kind'
Nio, which is popularly known as China's Tesla Inc (NASDAQ: TSLA), said it has forged a strategic collaboration with Mobileye for Advanced Driver Assistance Systems, or ADAS, and autonomous driving to develop highly automated and autonomous vehicles for consumer markets in China and other major territories.
As part of the collaboration, Nio said it will design and manufacture a self-driving system using Mobileye's level-4 AV kit.
"This self-driving system will be the first of its kind, targeting consumer autonomy, engineered for automotive qualification standards, quality, cost, and scale," according to Nio.
Nio said it intends to mass-produce the system for Mobileye while also integrating the technology into its EV lineups for the consumer market and for Mobileye's ride-hailing services.
"We are thrilled by the promise and potential of collaborating with NIO on electric autonomous vehicles, for both consumers and robotaxi fleets," Amnon Shashua, Mobileye CEO and Intel senior vice president, said in a statement.
The new variant, according to Nio, will initially be released in China, and will subsequently expanded into other global markets.
Nio now sells the ES6 model, an all-electric, five-seat mid-sized SUV launched in June; and the ES8 model, a seven-seat SUV.
"We look forward to building our strategic collaboration with Mobileye in autonomous driving technology development, to further enhance the safety and capabilities of our vehicles, as we strive to be the next-generation car company and the best user enterprise," Nio Chairman and CEO William Li said in a statement.
Nio's EV deliveries slumped earlier this year as China reduced subsidies for electric vehicles and a weaker geopolitical and macroeconomic climate stifled sales.
The company has hit back with a product-and-service focus.
Deliveries improved in September. On Monday, Nio reported solid delivery statistics for October, sending the stock soaring by 4.8%.
Nio shares were rallying by 27.9% to $2.20 at the time of publication, while Intel shares were up 0.83% at $58.09.
Photo courtesy of Nio.
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