NYSE: NIO
Key Data Points
Nio (NIO +1.46%), a smart electric-vehicle maker, closed Tuesday’s session at $5.50, up 3.00%. The stock has gained 10.00% in the past five days. Trading volume reached 77.5 million shares, coming in about 32% above versus its three-month average of 52.4 million shares.
Tuesday’s trading featured stronger fourth-quarter sales projections and China’s extended EV trade-in subsidies. Nio IPO'd in 2018 and has fallen 16% since going public.
How the markets moved today
The S&P 500 (^GSPC 1.52%) slipped 0.14% to 6,896, while the Nasdaq Composite (^IXIC 1.78%) fell 0.24% to 23,419. Auto manufacturers peers were mixed as investors compared Nio’s stronger Q4 outlook with ongoing competition in premium EVs. Tesla (TSLA 2.97%) fell by 1.13% and Li Auto (LI 2.52%) gained 0.64%.
What this means for investors
Nio extended its upward streak today as investors reacted to positive sales projections and a Chinese government policy change. Chinese officials announced an extension to trade-in subsidies for electric vehicles. According to Sherwood News, the shift in policy will give consumers up to $2,850 towards a qualifying new vehicle, boosting demand.
Meanwhile, CEO William Li told Chinese media that the company's Q4 vehicle sales will come in above 30 billion yuan (around $4.3 billion). This reassured the market after Nio's Q3 revenue disappointed. The upbeat sales figures come against a backdrop of chip shortages, which are impacting delivery of its new ES8 SUV orders.
