Shares of NIO Inc – ADR (NYSE:NIO) are trading higher Friday afternoon, extending a strong rally that has seen the stock surge over 40% in the past month. Here’s what investors need to know.
What To Know: Investor confidence is being driven by strategic product launches and a positive outlook from Wall Street analysts, despite broader concerns about competition in China’s electric vehicle market.
The primary catalyst behind the momentum is the impending launch of Nio’s new mass-market sub-brand, Onvo. Its debut vehicle, the L90 large family SUV, is priced aggressively from approximately $39,000 (RMB 279,900), positioning it as a direct competitor to rivals like Li Auto Inc.
With customer deliveries scheduled to begin on August 1, investors are optimistic about the model’s potential to significantly boost sales volume and market share.
This sentiment was recently reinforced by Morgan Stanley analyst Tim Hsiao, who reaffirmed a “Buy” rating and a $5.90 price target on the stock. Hsiao cited the Onvo L90 rollout as a key catalyst demonstrating strong execution.
The L90 leverages NIO's advanced 900V platform and its extensive network of over 3,400 battery-swapping stations, offering a key advantage in addressing consumer range anxiety. As the company prepares for the Onvo launch, it is also looking ahead to the late 2025 release of its third-generation ES8 SUV, further strengthening its future product pipeline.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, NIO presents a mixed financial profile focused heavily on performance. The company boasts a strong Momentum score of 71.86, indicating significant positive price movement and investor interest.
This is further corroborated by its Price Trend indicators, which show positive checkmarks across the short, medium, and long term. In contrast, the stock's fundamental metrics appear weak. It receives a low Growth score of 13.43 and a low Value score of 32.92, suggesting potential concerns about its rate of financial expansion and whether it is overvalued.
Price Action: According to data from Benzinga Pro, NIO shares are trading higher by 2.2% to $4.93 Friday afternoon. The stock has a 52-week high of $7.71 and a 52-week low of $3.02.
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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.
In the case of NIO, which is trading at $5.00 as of publishing time, $100 would buy you 20.0 shares of stock.
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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