Please ensure Javascript is enabled for purposes of website accessibility

Why NIO's Stock Was Up Over 10% Today

By John Rosevear – May 6, 2020 at 7:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

NIO's April sales report was a good one.

What happened

Shares of Chinese electric-vehicle maker NIO (NIO 1.22%) jumped on Wednesday after the company reported strong sales totals for April and said that its business is now fully up and running following the coronavirus outbreak. 

NIO's American depositary shares ended the day at $3.62, up about 10.4% from Tuesday's closing price.

So what

NIO released its April sales totals before the market opened on Wednesday, and they were good: The company delivered 3,155 vehicles in April, more than double its year-ago total and its best result since December. 

A NIO ES6, an electric crossover SUV upscale five-passenger.

Sales of NIO's ES6 were very strong in April. Image source: NIO.

In a statement, CEO William Bin Li said that NIO's production and delivery capabilities had largely recovered from the disruptions caused by the outbreak of the COVID-19 virus in China earlier this year. He said that the company is now looking forward, with strong sales momentum now that its stores have reopened.

Now what

NIO said in late April that it has secured 7 billion Chinese yuan (about $985 million) in new financing from economic-development authorities in China's Anhui province. But while it outlined the deal, there are several important questions it has yet to answer, including a big one: What happens to NIO's debt?

Auto investors are looking forward to NIO's 20-F filing (similar to a U.S. company's 10-K) to learn more. 

John Rosevear has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Nio Inc. Stock Quote
Nio Inc.
$15.77 (1.22%) $0.19

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.