Shares of Chinese electric vehicle maker Nio Inc – ADR (NYSE:NIO) are climbing Wednesday, recovering after Tuesday’s pullback. Here’s what investors need to know.
What To Know: Nio stock hit a new 52-week last week after reporting record deliveries for both September and the third quarter. Nio delivered 34,749 vehicles in September, a 64.1% year-over-year increase, and a record 87,071 units for the third quarter, representing a 40.8% rise. The strong performance was fueled by its new affordable ONVO and FIREFLY sub-brands.
Wednesday’s move higher follows a Tuesday pullback where Nio fell with other US-listed Chinese stocks as investors likely took profits amid strong gains. Chinese equities have rallied recently on improved sentiment surrounding the Golden Week holiday, but the positive mood was tempered by reports of soft national travel and spending data.
Despite the broader market volatility and concerns over the Chinese consumer, Nio’s strong delivery numbers are driving renewed investor confidence in the EV maker’s growth trajectory and market share expansion.
Benzinga Edge Rankings: Highlighting the stock’s strong price action, Benzinga Edge rankings give Nio a Momentum score of 88.61.
NIO Price Action: Nio shares were up 3.47% at $7.76 at the time of publication Wednesday, according to Benzinga Pro. The stock is trading near its 52-week high of $8.02.
Nio stock is trading well above its 50-day moving average of $6.08, suggesting a bullish trend. Key resistance is observed near the 52-week high of $8.02, while support can be identified around the 50-day moving average.
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How To Buy NIO Stock
By now you're likely curious about how to participate in the market for Nio – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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