Over the last trading session, shares of NIO Inc. are up another 50% to $3.62 a share. Since October 2019, shares of NIO are up 192%, as compared to the 7% gain on the Dow Jones Industrial Average, and the 10% gain on the S&P 500.
NIO Limited designs, manufactures, and sells electric vehicles in the People’s Republic of China, Hong Kong, the United States, the United Kingdom, and Germany. The company offers five, six, and seven-seater electric SUVs. It is also involved in the provision of energy and service packages to its users; marketing, design, and technology development activities; manufacture of e-powertrains, battery packs, and components; and sales and after sales management activities.
The NIO stock got a charge after posting third quarter results that were better than expectations. All thanks to deliveries that grew 35% year over year.
Its net loss for the quarter narrowed to RMB2.52 billion ($352.8 million), or RMB2.48 a share, from RMB2.81 billion, or RMB42.59 a share, year over year. Revenue jumped 25% to RMB1.84 billion ($257 million), which was above estimates calling for RMB1.7 billion.
Vehicle deliveries increased 35.1% to 4,799 ES8 and ES6 vehicles. “The electric vehicle sector experienced substantial softness in the second half of 2019 after the reduction of EV subsidies in China,” said Chief Executive William Bin Li. “Despite the challenges, NIO’s sales improved solidly since September,” as quoted by MarketWatch.
Moving forward, NIO expects to deliver 8,000 vehicles in the fourth quarter. If it can do so, that would be nearly double second-quarter figures. It also expects to post revenue of RMS2.81 billion, which is above estimates calling for RMB2.07 billion. “Facing a continuous soft auto market, we strongly believe the smart premium EV sector will outperform the industry in its growth rate in the foreseeable future,” said Chief Financial Officer Wei Feng.
At the moment, shares of NIO are up nearly 50% to $3.62 a share on a volume spike to 167 million, as compared to its daily average of 39.6 million.
Editors personal position in NIO: None
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Pandemic, stock market crash, economic recession, social unrest, geopolitical confrontation... 2020 will go down in history as a year of upheaval.
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