One of the key catalysts that can lift Nio Inc's (NYSE:NIO) stock from its doldrums is the ramping up of the ET5, the EV maker's newest model unveiled at the Nio Day 2021 event.
What Happened: The ET5's first prototypes for production validation rolled off the assembly line in Hefei on Jan. 23, the CnEVPost reported, citing the company.
This is a key milestone in the "Validation Build" phase, wherein the ET5 will be subjected to a full range of testing and validation work. It will help in optimizing the production line process, verifying functional integrity of the vehicle, and validate the properties and performance of the vehicle, the report said.
"Through small pilot production prototypes, the assembly process of the production line will be gradually adjusted to an optimal state, laying the foundation for mass production of the ET5," Nio reportedly said.
Related Link: Nio's New ET5 Sedan Will Be Available In Norway And Other Markets By Spring 2023: Report
Why It's Important: The company began taking preorders for the ET5 immediately after its unveiling at Nio Day 2021 on Dec. 18. Deliveries will begin in September, the company said.
The prototypes for the production line have been completed in under two months from the announcement of the model. This compares favorably to the ET7 timeline, which took the company about three months for the production line validation prototype.
Nio CEO William Li reportedly said in late December that the company collected record preorders for the ET5. Industry experts predict the ET5 will pose a potent threat to rival Tesla, Inc.'s (NASDAQ:TSLA) best-selling Model 3 sedan.
At last check, Nio stock was spiking 16.79% to $24.38.
Related Link: EV Week In Review: Tesla Raises Concern Over Future Growth, Lucid Going Places, GM Aims EV Leadership And More
Photo: Courtesy of nio.com
