Nio Inc, (NIO) the electric vehicle makers has again gained interest by investors by exceeding analyst’s expectations. Shares skyrocketed after the company reported sales totals for June and the second quarter that exceeded analysts’ expectations and its own guidance.
As of 4:00 p.m. EST, NIO’s American depositary shares were up about 4.2% from Thursday’s trading session. As reported by Money Midnight’s Jay Lorrence, the company has recently acquired a cash infusion, which can hold the company through 2020 and into early 2021.
What happened with NIO stock?
NIO said it delivered 3,740 of its luxury electric SUVs in June, up 179 per cent from a year ago and the company’s highest of all-time monthly deliveries. The result lifted its second quarter deliveries to a total of 10,331 cars, 191 per cent higher than the year-ago era and its best quarterly result ever.
Auto investors have every right to cheer on the news. Since the beginning of 2020, when its cash reserve dwindled and the effects of the COVID-19 outbreak in China threatened to push it to the brink of bankruptcy, NIO had come a long way.
Yet after receiving nearly $ 1 billion in new funding from the economic development authorities in April, and beginning to pay off with last year’s aggressive investments in an enlarged distribution network, NIO seems to be on a roll.
Investors now look forward to earnings and there is more reason to be optimistic about that. Noting that NIO’s second-quarter net sales surpassed the company’s guidance, CFO Steven Feng said on Thursday that he is optimistic that the company will meet or surpass its gross profit margin and “operational performance” goals.
NIO has not yet set a date for its second-quarter earnings report but in the second half of August it is likely to happen sometime.
Nio’s momentum so far this year adds pressure on GM and Ford, which have seen sales slow in the key U.S. and China markets. Both carmakers and their global peers plan to flood global markets with electric SUVs, pickup trucks and vans over the next few years.
In early June, Goldman Sachs analyst Fei Fang said Nio’s financial situation is improving while it’s seeing positive word-of-mouth for the “robust quality” of its premium electric SUVs.
Conclusion: Is NIO stock a good investment?
Shares of NIO, Inc. (NIO) appear to be a very good investment option, with Wall Street analysts expecting its price to rise considerably in the next several months. The majority of the metrics point to this investment being highly short term attractive.
Interested in buying NIO? Then you should look at Hyliion, slated to IPO this year! Some investors are calling it the “Tesla Killer.”
