Why Is NIO Stock Up Today?


  • Nio (NIO) recently reported mixed earnings results for the first quarter.
  • Shares began the day by falling, but they have since reentered green territory.
  • This could be the start of the NIO stock turnaround investors have been waiting for.
NIO booth showroom in Shanghai Pudong International Auto Show. Car exhibition and vehicle promotion. Auto business and economy staff with mask coronavirus period
Source: Andy Feng / Shutterstock.com

Nio (NYSE:NIO) stock is rising today after reporting narrower-than-expected losses for the first quarter. This Chinese electric vehicle (EV) producer is still recovering from a difficult year, with NIO stock down 19% year-to-date (YTD). However, the recent earnings report may finally signal the turnaround that Nio needs.

Although the results were mixed, NIO stock is slowly trending upward after some volatility in pre-market and early morning trading. Market momentum is generally positive today for the company and its Chinese EV peers. This bodes well for Nio’s prospects as shares look to make up lost ground.

Does this mean the EV stock is going to start making real progress? If momentum continues, it’s certainly possible. Let’s take a closer look at the earnings report and assess what investors can expect.

What’s Happening With NIO Stock?

As noted, Nio started off trading today on a low note. However, shares have since rebounded, although its current trajectory suggests they could slip again. As of this writing, NIO is trading at parity, down roughly 10% from the current session high. Given where it started the day, though, NIO stock could easily rebound, especially with its recent earnings.

Barron’s reports:

“NIO […] reported an adjusted per share loss of 36 cents from sales of $1.6 billion. Wall Street was looking for a loss of 39 cents a share on sales of $1.7 billion. A year ago, the company reported a loss of 12 cents a share from $1.5 billion in sales […] Overall gross profit margins came in a 1.5% for the first quarter, down from 3.9% reported in the fourth quarter, and down from 14.6% a year ago.”

These overall results are certainly mixed, but they also aren’t overwhelmingly negative. This means that NIO stock has plenty of room to run over the second half of 2023. Additionally, as InvestorPlace contributor Muslim Farooque notes, there are plenty of reasons to bet on Nio, including new EV models and its foray into European markets.

While Q1 earnings may make some investors nervous, it’s important to see the bigger picture when it comes to NIO stock.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

Article printed from InvestorPlace Media, https://investorplace.com/2023/06/why-is-nio-stock-up-today-3/.

©2023 InvestorPlace Media, LLC