Nio Gets Closer to Smartphone Manufacturing by Building $100 Million Mobile Tech Company

Nio Inc. NIO has incorporated a new arm that could eventually help the Chinese electric vehicle maker’s efforts to manufacture smartphones, CnEVPost reported on Thursday.

What happened: The company has implemented Nio Mobile Technologies Co Ltd with a registered capital of $100 million, according to the report, which quotes the data provider Qichacha.

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Qin Lihongthe co-founder and chairman of NIO, would be the legal representative of the division with headquarters in Anting, Shanghai – the same location where Nio’s global headquarters are located.

It belongs entirely to NIO Nextev Limitedregistered in Hong Kong, according to CnEVPost.

Activity field: The company is believed to be involved in the sale of electronics, mobile devices, wearables, artificial intelligence hardware and communication devices, as well as technology development and software development, the report said. .

Why is this important: Nio President and CEO William Liaccording to media reports, said in March that his company was in the research phase to manufacture phones.

Later, Li allegedly told a group of Nio owners in Fujian province that the electric vehicle company would develop a phone every year, as Apple Inc. AAPL.

The report cited a Weibo blogger saying NIO phone will be cheaper than iPhone and will likely cost upwards of 7,000 RMB ($1,040).

Nio is considered a rival of Tesla Inc. TSLA, Xpeng Inc. XPEV and other key electric vehicle manufacturers.

price action: US shares of Nio ended up 2.9% at $20.9 on Thursday and were up 0.3% in extended trading.

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