Finance
Why Nio Stock Soared Today
Electric vehicle (EV) sales are slowing around the world. EV makers have even cut prices in China, the world’s largest EV market, to boost sales. But Nio (NYSE: NIO) just surprised investors with a strong April, and the stock is rising as a result.
Nio American Depositary Shares (ADS) were trading 13.2% higher after the report at 3:32 PM ET. This move has contributed to the strong rally in stocks in recent weeks.
Nio EV deliveries shine
One reason for the strong reaction from investors was how Nio fared compared to the competition last month. Nio reported deliveries of 15,620 electric vehicles in April. That was an increase of 135% compared to last year. Competitors XPeng And Li Auto didn’t see nearly as big an increase. They reported year-over-year April shipment growth of just 33% and 0.4%, respectively.
Nio also just started delivering its upgraded 2024 ET7 luxury sedan on April 30. That model is intended to attract users at board level. The company says it offers “major improvements to the interior and exterior design and the digital cockpit.”
The improved ET7 could be another catalyst to continue revenue growth in the coming months. Nio also began a new partnership with the global luxury EV maker in late April Lotus technology to share its loading and exchange services.
Even after jumping nearly 40% in the past two weeks, Nio shares remain down about 40% so far this year. After a third straight month of rising shipments and new potential catalysts, investors who see EV growth continuing in the coming months and years may now want to take a small position in Nio.
Should You Invest $1,000 in Nio Now?
Before you buy shares in Nio, consider the following:
The Motley Fool stock advisor The analyst team has just identified what they think is the 10 best stocks for investors to buy now… and Nio wasn’t one of them. The ten stocks that survived the cut could deliver monster returns in the coming years.
Think about when Nvidia made this list on April 15, 2005… if you had $1,000 invested at the time of our recommendation, you would have $529,390!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including portfolio building guidance, regular analyst updates, and two new stock picks per month. The Stock Advisor is on duty more than quadrupled the return of the S&P 500 since 2002*.
*Stock Advisor returns April 30, 2024
Howard Smith has positions in Nio and XPeng. The Motley Fool holds and recommends Nio. The Motley Fool has one disclosure policy.
Why Nio Stock Soared Today was originally published by The Motley Fool
