Chinese electric vehicle maker Nio (NYSE:NIO) has come along way during the past year and a half. As the company thrives, NIO stock continues to push forward and the bullish momentum is undeniable.
Yet, there are down days for the stock – that’s true for every stock, of course. Still, there are times when the share price really ought to go up, but doesn’t.
A mismatch between the NIO stock price and the available data might be confusing, but it’s not necessarily a bad thing. If anything, we should be prepared to make a move if the share price goes down despite a positive news release.
We’ll definitely get into the specifics of this rare but interesting situation – but first, let’s get into some analysis for all of the technical traders out there.
NIO Stock at a Glance
It might be hard to wrap your head around the multi-year breakout in NIO stock. Amazingly, you could have picked up the shares for just $1.50 at one point, back in 2019.
Those days are long gone, so there’s no point in hoping that the stock price gets that low again. We’ll just have to work with the numbers that are in front of us today.
After a spectacular rally, NIO stock hit a resistance point of $62 in early 2021. Actually, it went to that level three times, so that’s a target which the bulls can aim for.
After such a powerful run-up in the share price, a retracement was to be expected. After all, a stock doesn’t just go straight up, no matter how well the company is doing.
Fast-forward to Aug. 3, 2021, and we see that NIO stock closed at $44.57. It was down nearly 3% for the day – was this due to some bad news?
On the contrary, the news from the previous day was positive. Now, let’s drill down to the specifics and see what actually happened.
Knocking it Out of the Park, Again
On Aug. 2, Nio provided a fresh update on the automaker’s vehicle deliveries for the month of July.
Realistically, you couldn’t ask for more than what the company actually achieved.
In July of 2021, Nio delivered a total of 7,931 vehicles. On a year-over-year basis, that represent vehicle delivery growth of 124.5%.
That figure can be broken down like this:
- 3,669 ES6’s, (the five-seater high-performance premium smart electric SUV)
- 2,560 EC6’s (the five-seater premium smart electric coupe SUV)
- 1,702 ES8’s (the six-seater or seven-seater flagship premium smart electric SUV)
Breaking down the numbers this way helps us to see which vehicles are Nio’s most popular.
In any case, all three models are selling quite well.
A Spoiled Market
If you’d like a running total, as of July 31, Nio’s cumulative deliveries of the ES8, ES6 and EC6 models totaled 125,528 vehicles.
When the company was struggling a year and a half ago, reaching that number of vehicle deliveries was almost unimaginable.
Besides, doubling the number of monthly vehicle deliveries on a year-over-year basis is a notable accomplishment.
So, why did the trading community react negatively and dump their shares in response to this?
It’s almost unfathomable, but there’s a possible explanation. Most likely, the investors are just spoiled by Nio’s great results.
For example, the company delivered 8,083 vehicles in June, marking a 116.1% year-over-year increase.
OK, so July’s 7,931 vehicles is less than June’s 8,083 vehicles.
Some folks might look at those numbers and say that the growth is “decelerating.”
You can see the glass as half empty if you want to. Or, you can be impressed with Nio’s long-term growth story, which has been truly amazing.
The Takeaway
Let’s not get spoiled by Nio’s great results. The last thing that any trader should be is jaded.
Instead, let’s appreciate the company’s progress. And if the share price went in the “wrong” direction, that’s your chance to make a move.
On the date of publication, Louis Navellier had a long position in NIO. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
