Nio Inc (NIO) Stock: Is Now The Time To Get Involved?

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Nio Inc – ADR (NYSE: NIO) is edging up in the market this morning, following up on the strong gains that we’ve seen from the stock over the past month. While no news has been released, investors are looking forward to the company’s earnings report to be released after the closing bell today.

There are also several other reasons that investors are excited about the stock. Today, we’ll talk about:

  • Why investors are excited about NIO stock;
  • what we’re seeing in the market; and
  • what we’ll be watching for ahead.

Why Investors Are So Excited About NIO Stock 

As mentioned above, Nio is having a strong day in the market today, following up on the recent gains that we’ve seen from the stock. So, what is it that has investors so excited about the stock?

First and foremost, the company is expected to issue its financial results for the most recent quarter after the market close today. This report is expected to be a big hit.

The company recently reported that it saw a 144.2% sequential increase in ES8 deliveries. As a result, investors are expecting for this to equate into strong revenue and earnings growth.

However, there are good reasons to be excited about NIO that have absolutely nothing to do with today’s coming earnings report. Some of the biggest reasons for the excitement involve:

Trade War News

Over the weekend, the United States and China made progress when it comes to putting an end to the trade war and sanctions on both sides of the ocean. According to various reports, the two countries are close to reaching an agreement.

Of course, if an agreement is made, sanctions would be lifted. This would offer hope for improvements in the Chinese economy, which would likely directly equate to stronger sales for NIO.

Tesla

There aren’t very many large competitors in the EV space. The largest is Tesla. However, the news surrounding the EV giant hasn’t been positive.

Recently, Tesla has been faced with SEC allegations that Elon Musk once again made false and misleading statments. As a result, the SEC is putting pressure on Tesla, leading to investors wanting to find other options.

Ambitious Growth Plans

We know that throughout the fourth quarter, NIO has been successful with regard to its ambitious gorwth plans. This can be seen from the strong growth in deliveries. Investors are expecting that the strong growth will continue, also helping to fuel interest.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Nio, recent news has been positive.

Moreover, with an earnings release coming in just hours, investors are excited to see what will be coming down the line. After all, strong deliveries should equate to strong revenue growth.

As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:58), NIO is trading at $10.06 per share after a gain of $0.28 per share or 2.86% thus far today.

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What We’ll Be watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on NIO. In particular, we’re interested in following the company’s earnings release today as well as its continued work to achieve its ambitious growth goals. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

What Do You Think?

Where do you think NIO is headed? Join the discussion in the comments below!

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