NIO Inc (NYSE:NIO) shares are trading higher Monday. The move appears to be driven by continued momentum following the company’s Onvo L90 pre-order launch last week.
What Happened: Nio on Thursday held its product and technology launch for the Onvo L90. The company announced that the large three-row SUV will start at RMB 279,900 ($39,040), or RMB 193,900 if the customer opts for the battery as a Service option.
The official launch for the Onvo L90 is expected by the end of the month, with deliveries planned to start on Aug. 1 in the Chinese market.
Morgan Stanley recently reiterated a Buy rating on Nio and price target of $5.90 as the analyst firm expects the Onvo L90 launch to be a catalyst for the company. Nio shares have rallied in recent sessions and are now up more than 15% over the past week.
At the beginning of the month, Nio said it delivered 24,925 vehicles in June, up 17.5% on a year-over-year basis. 6,400 of those deliveries were Onvo brand vehicles.
Nio said it delivered a total of 72,056 vehicles in the second quarter, up 25.6% year-over-year. Cumulative deliveries grew to 785,714 as of June 30.
Nio recently guided for second-quarter sales of $2.69 billion to $2.77 billion versus estimates of $2.78 billion, according to Benzinga Pro. Analysts currently expect the EV company to report a second-quarter loss of 30 cents per share and revenue of $2.76 billion.
Nio has missed analyst estimates on the top and bottom lines in the past two quarters. The stock is down about 10.5% year-to-date and is trading well below its 52-week high of $7.71.
How To Buy NIO Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Nio's case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
NIO Price Action: Nio shares were up 5.13% at $4.10 at the time of publication Monday, according to Benzinga Pro.
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Photo: courtesy of Nio.
