Chinese electric vehicle (EV) manufacturer NIO has made its debut in the smartphone market, unveiling an Android phone on Thursday. The device, priced around $900, is expected to start shipping on September 28.
The announcement had a minor impact on NIO's American depositary receipts (ADRs), which saw a slight 0.1% increase in premarket trading, standing at $8.81. This uptick comes as the company is working to recover from a recent downturn. Earlier this week, NIO's ADRs suffered a blow after the firm issued $1 billion in convertible bonds, leading to a drop in stock price from levels above $10.
CEO William Li expressed optimism about the new product's reception among NIO users. He anticipates that at least half of them will purchase the phone. As of the end of August, the company's total vehicle deliveries were recorded at 383,908.
Despite this new venture, NIO clarified that its entry into the smartphone market is not intended to challenge existing phone manufacturers. Instead, the company aims to enhance the driving experience of its EV customers.
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