What happened
Actions of the Chinese manufacturer of electric vehicles NIO (NYSE: NIO) It resumed its upward load on Monday morning. The stock fell more than 25% last week amid notes from Wall Street analysts urging investors to be cautious.
But investors appeared to have thrown those warnings into the wind on Monday morning. As of 11:15 am EDT, the shares of NIO’s US depositaries rose approximately 10.6% from Friday’s closing price.
NIO’s next new model will be the ET7 sports sedan, which will launch early next year. Image source: NIO.
And that
NIO, the company and its shares, has been in tears for the past few months. After starting 2020 at a difficult time, dangerously short of cash and reeling from the COVID-19 outbreak in China, things have changed very well for the brave electric vehicle company.
NIO addressed automotive investors’ liquidity concerns decisively, securing nearly $ 1 billion in cash from economic development authorities in China’s Anhui Industrial Province and an additional infusion from early investors. Tencent Holdings (OTC: TCEH.Y). And NIO sales rebounded very well as the pandemic receded, resuming its growth trajectory and nearly tripling in the second quarter of the previous year.
NIO’s shares rose, increasing more than 200% from early June through July 10. But NIO’s shares sold last week, declining more than 25%, with at least one analyst warning investors that the company’s share price had far exceeded justified by its fundamentals.
Was that the end of the NIO rally? Apparently not: Late Monday morning, last week’s decline is more like a correction that may have happened.
Now what
After that strong second-quarter sales result, NIO investors will await the company’s second-quarter earnings report. NIO has not yet announced a date for that report, but it is likely to happen in the second half of August.
