Nio Inc – ADR (NYSE: NIO) is up big early on in today’s trading session. However, the company hasn’t issued any press releases or filed any SEC filings. So, what’s the deal? Well, there’s quite a bit going on that could move the needle for the company at the moment. Today, we’ll talk about:
- What’s going on with NIO;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s What’s Happening With NIO
Nio has been a hot topic as of late, and that hot topic is flying in the market today. As mentioned above, there has been no news. So, what’s the deal? Well, there is plenty to think about here.
Earnings – First and foremost, NIO will report its earnigns on November 6, 2018. This earnings report is a very important one for the company. After all, it will be the company’s first as a publicly traded entity. With this being the first earnings report, investors are excited that the company will perform well, leading to more investor interest in this recently public stock.
Chinese Taxes – Another key factor here has to do with taxes in China. It was recently announced that the Chinese government plans on cutting taxes on new car purchases by 50%. That’s a massive tax cut and many experts are arguing that this will lead to strong gains for car manufacturers in the region. After all, with taxes down 50%, consumers are more likely to purchase new vehicles.
NIO Exceeds Targets – Another factor of note here has to do with SUVs that were delivered in the third quarter. The company recently announced that it delivered 3,268 vehicles in the third quarter. That figure surpassed the company’s own guidance of between 2,900 and 3,000 vehicles.
What We’re Seeing From The Stock
With so much positive news surrounding Nio and the recent declines that we’ve seen from the stock, it only makes sense that we’re seeing a run today. After all, the recent declines may represent an opportunity while positive news suggests that the company is on the right track when it comes to growth ahead. So, it comes as no surprise to see that excited investors are pushing the stock upward. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:56), NIO is trading at $6.40 per share after a gain of $0.47 per share or 7.83% 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 story surrounding the company’s continued work to expand sales and deliveries of its electric vehicles. We’re also excited to see how the 50% reduction in taxes associated with car sales moves the needle for the company. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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