NIO Inc. (NYSE: NIO) shares are trading higher following reports suggesting the company said it would be able to double annual production capacity at its Hefei facility in 2022.

According to a CnEVPost report, NIO said the upgrade is for the start of production of new models, including the ET7. The current annual production capacity is 120,000 units per year, and will reach 240,000 units per year after the overall upgrade is completed.

Following all the expansion work and with extra operating shifts, the plant would be able to make up to 300,000 cars a year, as per the report.

NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China. The company offers five, six, and seven-seater electric SUVs, as well as smart electric sedans.

NIO's stock was trading about 3.3% higher at $37.49 per share on Friday at the time of publication. The stock has a 52-week high of $66.99 and a 52-week low of $25.46.

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