Nio's deliveries rose more than 20% year over year in the first four months of 2024. Image source: Nio.
Shares of Chinese electric-vehicle (EV) maker Nio (NIO 0.66%) were moving higher on Monday as investors revisited former meme stocks that enjoyed social media-powered surges earlier in this decade. But the company had recent good news of its own to report.
As of 2:25 p.m. ET, Nio's American depositary shares were up about 6.7% from Friday's closing price.
A "meme stock" surge follows strong deliveries
A slew of former meme stocks -- led by GameStop -- were trading sharply higher on Monday after "Roaring Kitty," a social media personality who inspired major short squeezes in 2021, posted for the first time in roughly three years.
Nio was one of many stocks that experienced run-ups during that period. The stock has been on a renewed ascent in recent weeks, up more than 50% from its mid-April low, on stronger-than-expected deliveries and a new incentive program announced late last month by the Chinese government.
Through April, Nio's deliveries were up 21% year over year. China's new incentive program, which will last until the end of 2024, offers buyers of electric and hybrid vehicles a subsidy of roughly $1,000. That could give Nio's sales an extra boost.
Nio's lower-cost brand launches later this week
Nio also confirmed last week that its long-awaited lower-priced brand, Onvo, will launch on May 15. The first Onvo model, the L60, will be a "family centric" crossover designed to compete with Tesla's Model Y, with a starting price of around $34,600, Nio said.
Nio sells some of its upscale EV models in Europe, but it isn't yet clear whether the L60 or other Onvos will be offered outside of China.
Nio has yet to announce a date for its first-quarter earnings report, but it's expected to happen in late May or early June.
