Nio (NYSE:NIO) stock jumped 4% over the weekend after announcing June car deliveries doubled those from the year before.
Nio delivered 21,209 cars during the month, its second record in a row. Deliveries for the quarter of 57,373 also exceeded previous guidance.
Over the weekend, NIO’s gains erased most of its June 28 trading loss. The Chinese electric vehicle (EV) maker opened at $4.33 per share, with a market capitalization of about $9.4 billion. Other Chinese EV makers traded in New York were also up, including XPeng (NASDAQ:XPEV), Li Auto (NASDAQ:LI) and Polestar (NASDAQ:PSNY).
NIO stock is down almost 50% in 2024 and almost 60% in the last year. It traded at over $15 per share last August. The all-time high is nearly $60 per share, achieved in early 2021.
Nio Rise or Nio Fall?
InvestorPlace’s Louis Navellier insists nothing substantial has changed in Nio’s trajectory, that the stock remains in “penny stock” territory.”
The bigger news about Nio involves its coming small car, dubbed “Firefly.” CEO William Li confirmed that the new car won’t be able to use current Nio “battery swap” stations. Instead, it will use smaller, simpler swap stations that feature coffee bars. This is due to its smaller wheelbase. The new car will be priced at between $14,000-$28,000.
A third Nio brand, Onvo, will only be able to use fourth-generation Nio swap stations that began opening in June.
Nio also faces a new 21% tariff in Europe. This has caused it to launch Firefly in China first, with exports to Europe later. When the year started, Nio had been planning a major export push this year due to competition in its home market.
Nio sold 20% of itself to Abu Dhabi’s public investment fund late last year. Its technology will be incorporated into a new British-Emirati luxury EV startup called Forseven.
NIO Stock: What Happens Next?
Nio remains the canary in the coal mine for China’s EV export push. And the canary does not look well.
On the date of publication, Dana Blankenhorn 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
