Nio Inc. (NYSE:NIO) shares are trading higher Thursday morning, despite a lack of company-specific news for the session. The move higher offers a welcome reprieve for the Chinese EV maker, which has seen its stock shed over 30% of its value in the past month. Here’s what investors need to know.
- NIO is delivering impressive returns Thursday. See what is driving the move here.
What To Know: The recent volatility follows mixed fiscal third-quarter results. While Nio missed revenue estimates with $3.06 billion, it beat earnings expectations, posting a narrower-than-expected adjusted loss of 15 cents per share. Fundamentally, the company showed improvement, expanding gross margins to 13.9%, up from 10.7% a year prior.
Bullish sentiment is currently being fueled by robust operational data. Nio reported delivering 36,275 vehicles in November, a 76.3% year-over-year surge. This growth is bolstered by the company’s multi-brand strategy, which now includes contributions from its family-oriented Onvo brand and the high-end compact Firefly line. Additionally, the company continues its global expansion, recently announcing a partnership to enter the Thailand market.
Despite the recent stock slump and mixed analyst reactions, including a downgrade from Macquarie and a price target cut from Citi, management remains aggressive. Nio issued strong guidance for the fourth quarter, projecting deliveries between 120,000 and 125,000 units, aiming for a record-breaking finish to 2025.
Benzinga Edge Rankings: According to Benzinga Edge rankings, Nio currently holds a strong Momentum score of 69.79, highlighting significant trading interest despite the stock registering negative price trends across short, medium and long-term horizons.
NIO Price Action: Nio shares were up 2.92% at $4.93 at the time of publication on Thursday, according to Benzinga Pro data.
Currently, Nio is trading approximately 26.1% below its 50-day moving average and about 1.5% below its 200-day moving average. These indicators suggest that while the stock is experiencing a short-term rally, it remains significantly below its longer-term trend lines, indicating potential resistance at higher price levels.
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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.
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