After the Nio company released strong deliveries, the stock prices in Hong Kong and the premarket rebounded. The stock price of Nio jumped from $6.50 to $6.50 in Hong Kong and in premarket after the company published strong delivery numbers.
Nio deliveries are soaring
Nio’s stock rose on Tuesday as its customers bought its new vehicles in large numbers.
The company reported that they delivered 31305 cars in August. This was a record-high and a 55.2% rise from the previous year’s same time period. The company’s cumulative sales for this year are now 166 472 vehicles, up 30% from last year.
Nio has seen a good business because its recent products have been well received by customers. Nio’s premium brand, which sold 10,525 cars, was followed by Onvo with 16,434 and Firefly, at 4,346.
This trend will continue over the next few months.
The deliveries were made just a few weeks after Byd, its biggest competitor, published weak financial figures, blaming the increasing competition for their weakness.
Nio also does well, as the Chinese electric vehicle market is becoming saturated. Li Auto, XPeng SAIC and Cherry, among other top Chinese companies, sell thousands of cars a month. They rely on discounts.
Nio shares surge 11% after Morgan Stanley reaffirms its bullish outlook following the ES8 release
Earnings ahead: Nio?
Next, earnings will be released shortly before US markets open.
The company delivered 72,056 cars in the third quarter. This is up 25.6% compared to the previous period.
Analysts expect that the company’s revenue will increase by 13% year-over-year to CNY 19,74 billion. This is a faster growth rate than companies such as Tesla or Byd.
Analysts expect that the results will show a slight improvement in the company’s losses during this period. The loss per share is expected to be CNY 2,21, which is a decrease from the previous CNY 2,20.
Nio has forecast that the company’s revenue will reach CNY 89.7 Billion for this quarter, an increase of 36.5% over the previous period. The annual revenue will be CNY89.72billion last year and CNY116.25billion next year.
Technical analysis of Nio Stock Price
Nio stock chart | Source: TradingView
Daily chart showing Nio shares in strong bullish trends in recent months. Moving from $3 today to $6.50, as predicted in and .
Stock has risen above upper edge of inverse Head-and-Shoulder pattern. It is now $5.48. Technical analysis considers this to be one of the best bullish reversal signals.
The 50-day Exponential Moving Average (EMA) and the 200-day EMA have also crossed.
The Relative Strength Index and MACD have also continued to rise, indicating that the market is gaining steam.
Bulls will therefore likely target $7.67 as the next major resistance level, which is up 17% on the current price. The bullish forecast will be invalidated if the stock drops below $6.
The post Why Nio Stock Price May Surge After Earnings may change as new information is released.
