Nio Inc. (NYSE: NIO) announced on Tuesday that it has created a strategic collaboration with Mobileye, an Intel (NASDAQ: INTC) subsidiary, to develop autonomous vehicles for consumer markets in China and other major territories.
The announcement sent Nio shares skyrocketing by 28.3% higher during mid-day trading hours.
As part of the collaboration, Nio will engineer and manufacture a self driving system designed by Mobileye, building on Mobileye’s level 4 AV kit.
Nio will mass produce the system for Mobileye and also integrate the technology into its electric vehicle lines for consumer markets and for Mobileye’s driverless ride-hailing services. Initially, the vehicles are expected to target China, with plans to expand into other global markets.
“At NIO, we pride ourselves on our pursuit of innovation and cutting-edge technology, which not only strengthens our product competitiveness but also shapes a joyful lifestyle for our users,” said William Li, Founder, Chairman and Chief Executive Officer of NIO.
“We look forward to building our strategic collaboration with Mobileye in autonomous driving technology development, to further enhance the safety and capabilities of our vehicles, as we strive to be the next-generation car company and the best user enterprise,” concluded Li.
Amnon Shashua, Intel. Senior Vice President and President and Chief Executive Officer of Mobileye, said, “We are thrilled by the promise and potential of collaborating with NIO on electric autonomous vehicles, for both consumers and robotaxi fleets. We value the opportunity to bring greater road safety to China and other markets through our efforts and look forward to NIO’s support as Mobileye builds a transformational mobility service across the globe.”
Despite the announcement, Nio shares are still down 65.3% this year.