U.S.-listed Chinese electric vehicle maker Nio Inc (NYSE: NIO) is in the research phase of making phones, CnEVpost reported on Thursday, citing company founder and CEO William Li’s interview with a local news portal.
What Happened: Rumors about Nio considering a smartphone-making foray have been floating around for over a month.
Li did not reveal further details but said the EV maker will “look in this direction,” but knows that “building a good phone is challenging."
Nio did not respond to Benzinga’s request for comment at press time.
See Also: Nio's William Li Says EV Maker On Track To Break Even In 2024 Amid Rising Chip, Raw Material Prices
Why It Matters: Li last week had told analysts in a post-earnings call that Nio is actively exploring “the possible connections and the synergies between the vehicle and smartphones and other mobile terminals.”
“...we believe there are lots of synergies between these two products in terms of the fundamental technologies, the supply chain, and the software.”
Nio is considered a rival to Tesla Inc (NASDAQ: TSLA), Xpeng Inc (NYSE: XPEV), and other key EV makers.
Price Action: Nio stock closed 1.4% higher at $22.2 a share on Wednesday.
Photo courtesy: Nio
