Shares of Nio Inc., and those of other China-based electric-vehicle makers, powered higher Friday, after a report that China reportedly plans to provide car owners with an incentive to buy EVs.
The move comes as EV makers have been cutting prices in China in an effort to jumpstart demand, which has been trending down.
Nio's stock $(NIO)$ rallied 7.8% in morning trading. It has run up 17.1% this week, which puts it on track for the biggest weekly gain since it rocketed 39.3% during the week ending July 28, 2023.
China plans to pay car owners up to 10,000 yuan, or nearly $1,400 at current exchange rates, if they replace their cars with electric or hybrid vehicles through the end of this year, according to a report in The Wall Street Journal.
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