What happened
Nio (NIO 0.09%) stock surged this morning and was trading up 6.9% as of 10 a.m. ET. Today's move proves just how volatile the electric vehicle (EV) stock can be -- until yesterday's close, the company looked set to end the week on a weak note. As of this writing, though, it's up 5.2% this week.
Nio filed its annual report this morning, and there's some good news pouring in from China as well.
So what
Although Nio already announced its full-year numbers in March, today's regulatory filing is a reminder to investors about where the company stands. Here are some important 2021 numbers from Nio you'd want to know:
- Vehicle sales were up 118.5% to $5.2 billion.
- Total revenue (which includes vehicle sales and other services like battery-as-a-service and battery swap) rose 122.3% to $5.7 billion.
- Gross profit gained 264% to $1 billion.
- Net loss increased 88.4% to $1.7 billion.
Importantly, Nio's annual report revealed the company ended 2021 with cash and cash equivalents and short-term investments worth nearly $8.7 billion, which it says is sufficient to help it navigate the uncertainty around COVID-19. Nio has cut production since late March amid lockdowns in China, and in its annual filing, the company revealed it's yet to start full operations.
Image source: Nio.
As for its growth plans, the company reiterated its goal to start delivering its midsize premium sedan, ET5, starting this September and is also sticking with its plan to expand internationally beyond China and Norway.
Investors are perhaps relieved to see Nio is on track with its growth plans. But what's fueling their excitement even more on Friday are the latest reports coming from China.
China and the U.S. are reportedly in talks to come up with an audit deal soon, according to Reuters. Foreign stocks, especially Chinese stocks, have faced the threat of delisting from the U.S. under the U.S. Securities and Exchange Commission's tightened scrutiny. An audit deal would be a major breakthrough as China and the U.S. have been at loggerheads over this for several years now, and any deal could remove a major overhang from stocks like Nio.
Now what
China is also reportedly planning to end its crackdown on tech stocks, and while Nio isn't a tech stock, the crackdowns have hurt investor sentiment in nearly every Chinese stock, particularly growth stocks like Nio.
NYSE: NIO
Key Data Points
It's no surprise, therefore, that Nio shares are racing higher today. Investors perhaps see the positive news from China as further catalysts for Nio stock to bottom out after its recent sharp fall.
