NIO Inc. ( NIO Quick Quote NIO - Free Report) recently entered into a strategic partnership with China steel producer Baoshan Iron & Steel (Baosteel), per which the companies will join forces in areas like products, supply chain and state-of-the-art technology applications. A signing ceremony was held at NIO's global headquarters in Shanghai's Jiading district on Jan 10, 2022, to mark the collaboration between the companies. The financial details of the deal are still under the wraps. Founded in February 2000, Baosteel is a listed subsidiary of China Baowu Steel Group and operates in steel-related businesses, including steel smelting, electricity, coal, industrial gas production, warehousing and transportation. The company strives to achieve carbon-neutrality by 2050. The companies are highly optimistic about the partnership, which is aimed at solidifying their cooperation in zero-carbon areas. For NIO, this cooperation will provide the company with a global partner to work hand-in-hand on products, supply chain, latest technology, new material applications and carbon-free pathways. It will also help the company leverage Baosteel’s expertise in products like non-oriented silicon steel and automotive plates. Amid the heightening climate change concerns, Shanghai-headquartered NIO is a pioneer in China’s electric vehicle (EV) market and seems to be well poised to cement a strong foothold in the rapidly growing EV industry. The rising demand for its ES6, ES8 and EC6 models is enhancing the firm’s top line. This year, the firm intends to deliver three new products based on the NIO Technology Platform 2.0, including the ET7 model. Deliveries of ET7 are scheduled to commence in first-quarter 2022. Also, NIO’s battery swap technology is a game-changer and lends it an edge over its peers. Last week, NIO notified holders of its 4.50% Convertible Senior Notes due 2024 that by virtue of the Indenture dated as of Feb 4, 2019, each holder had the right to require the company to repurchase all of such holders’ Notes or any part thereof that was an integral multiple of $1,000 principal amount for cash on Feb 1, 2022. This repurchase right will expire at 5:00 p.m., New York City (NYC) time, on Jan 28, 2022. Zacks Rank & Other Key Picks
NIO currently carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Other top-ranked stocks in the auto space include Fox Factory Holdings ( FOXF Quick Quote FOXF - Free Report) , General Motors ( GM Quick Quote GM - Free Report) and LKQ Corporation ( LKQ Quick Quote LKQ - Free Report) , all carrying a Zacks Rank of 2 currently. Fox Factory has an expected earnings growth rate of 16.67% for the fourth quarter of 2021. The Zacks Consensus Estimate for its fourth-quarter 2021 earnings has been revised 2 cents upward in the past 90 days. Fox Factory’s earnings beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 15.85%, on average. FOXF has surged 24.4% in the past year. General Motors has an expected earnings growth rate of 1.12% for 2022. The Zacks Consensus Estimate for its 2022 earnings has been revised 11 cents upward in the past 60 days. General Motors’ earnings beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 46.51%, on average. GM has surged 28.6% in the past year. LKQ Corp has an expected earnings growth rate of 11.59% for fourth-quarter 2021. The Zacks Consensus Estimate for its fourth-quarter 2021 earnings has been revised a penny upward in the past 90 days. LKQ Corp’s earnings beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 34.37%, on average. LKQ has rallied 44.7% in the past year.