NIO (NYSE: NIO) stock jumped after announcing a tech license deal with Forseven Limited.
Nio (NIO) has inked a technology licensing deal with Forseven Limited, a subsidiary of CYVN Holdings. Under this agreement, Nio grants Forseven a global license to utilize specific technical information, solutions, software, and intellectual property rights associated with its smart electric vehicle platforms.
Forseven Limited will leverage this information for various purposes, including research and development, manufacturing, and sales of vehicle models branded under Forseven. In addition, it will extend certain after-sales services for the licensed products to its consumers. NIO will benefit from this partnership through upfront technology license fees and royalties tied to the future sales of licensed products.
NIO plans to release its financial results for the fourth quarter before the market opens on March 5. The estimates from Benzinga Pro forecast that Nio will report a loss of 51 cents per share. In the last quarter, while Nio surpassed EPS estimates, it fell short of analyst projections on the revenue front.
NIO (NYSE: NIO) Stock Reaction
NIO stock surged 4.63% to close at $5.65 on Monday. The traders had exchanged hands with 60,038,363 (60.03 million) shares compared to the average daily trading volume of 63.24 million.
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