(NIO - Free Report
) recently announced a partnership with Intel Corporation’s self-driving car technology firm Mobileye in order to develop driverless vehicles in China and other countries.
Under the deal, NIO is set to mass-produce self-driving systems designed by Mobileye, which will be incorporated into its line of electric vehicles. The company will also develop a version of electric vehicles that Mobileye will deploy as robotaxis for its ride-hailing services in global markets.
Mobileye's self-driving kit includes chip vision processing, camera, radar and lidar sensors as well as safety and mapping technology. The agreement will allow Mobileye to harvest data in compliance with Chinese regulations and improve mapping to support autonomous driving.
NIO’s stock soared 37% after the deal, adding 63 cents to close at $2.34 on the New York Stock Exchange, recording its biggest intra-day gain since September 2018. Before the surge, NIO tumbled 73% since its IPO in 2018, as the company struggled with cost overruns, a voluntary battery recall and macroeconomic conditions such as declining passenger vehicle sales and EV subsidies.
The company had issued a voluntary recall in June 2019 of nearly 5,000 ES8 SUVs after a series of battery fires in China, which significantly affected production and delivery of ES8 vehicles.
Notably, the Zacks Rank #4 (Sell) firm delivered 4,799 vehicles in third-quarter 2019, indicating a 35.1% year over year increase in sales. The company delivered 4,196 units of its five-seater ES6 SUV and 603 units of the ES8, its seven-seater premium electric SUV, in the quarter. Aggregate deliveries of the company’s ES6 and ES8 reached 23,689 vehicles, as of Sep 30, 2019.
Spartan Motors has an estimated earnings growth rate of 85.42% for the ongoing year. The company’s shares have surged roughly 113.9% in a year’s time.
SPX has an expected earnings growth rate of 23.18% for 2019. The company’s shares have surged 59.9% in the past year.
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