The shares of the Chinese EV-maker NIO soared nearly 38% on November 5 after the company announced a deal with Intel’s Mobileye on developing self-driving vehicle systems, for the Chinese and eventually international markets.
The deal sparks hope in NIO, which had tumbled 73% since its US IPO last year as the company struggled with faltering demand, funding requirements and executive departures. In September, the company said it was slashing a fifth of its workforce following disappointing financial results.
NIO added 63 cents to close at $2.34 in New York on November 5. The surge is the biggest intra-day gain the company has seen since September 2018.
Under the new arrangement, NIO will manufacture and produce a self-driving system designed by Mobileye, which will target consumer autonomy and make self-driving cars available to consumers, a departure from the traditional industry approach of developing autonomous vehicles just for ride-hailing services.
The self-driving kit provided by Israel-based Mobileye includes a vision processing chip, camera, radar and lidar sensors, as well as safety and mapping software. The new vehicles will initially be released in China, with plans to subsequently expand into other global markets, the companies said.
NIO said that the partnership with Mobileye aligned with its mission to provide premium, smart electric cars and allowed it to maintain an edge over electric vehicle competitors.