Benzinga | Oct 21, 2021 12:11PM EDT

Nio To Relocate Battery Swap Station Facing Forced Demolition By City Administration

Nio Inc (NYSE:NIO) plans to relocate and rebuild the battery swap station in Kaifeng, a city in China's Henan province, cnEVpost reported on Thursday, citing a company statement.

What Happened: The battery swap station, which was installed last month, was in the news this week after local municipal authorities tried to demolish it on Wednesday.

Nio said a new battery swap station would be included in the overall plan for the construction of the area, as per cnEVpost.

The electric vehicle maker also said it would increase investment in the region. It currently has 22 battery swap stations and 30 charging stations in Henan.

See Also: Alibaba, JD And Nio Rivals Xpeng, Li Auto All Turn Red In Hong Kong As Evergrande Tumbles On Trading-Resumption After 3-Week Pause

After the news of the demolition attracted the attention of Nio owners and other internet users in China, one of the company's executives issued a statement, pinning the event on the information gap between the city administration and Nio, cnEVpost had earlier reported.

Why It Matters: The move comes at a time when technology-oriented companies are facing intense regulatory scrutiny in the country.

Nio too was mired in a controversy earlier this year over the death of an entrepreneur in an accident involving one of its electric vehicles.

Price Action: Nio shares closed 0.62% lower at $39.78 a share on Wednesday.

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Photo: Courtesy of Nio