Shares of Nio Inc (NYSE:NIO) are trading marginally higher Monday morning, offering a reprieve for investors after a turbulent past month that saw the stock shed nearly 24% of its value. Here’s what investors need to know.
What To Know: Despite recent volatility, the Shanghai-based EV maker is finding support from strong operational data and aggressive forward guidance.
Bullish sentiment is largely fueled by a record-breaking November delivery update. Nio delivered 36,275 vehicles last month, marking a 76.3% year-over-year surge.
The strong growth was driven by the company’s multi-brand strategy, with significant contributions from the family-oriented Onvo brand (11,794 units) and the new high-end compact Firefly line (6,088 units). Management remains optimistic, projecting fourth-quarter deliveries between 120,000 and 125,000 units.
However, the stock’s recent slump reflects mixed third-quarter financial results. While Nio reported improved gross margins of 13.9% and a narrower-than-expected loss of 15 cents per share, revenue of $3.06 billion missed analyst estimates.
The mixed performance prompted varied reactions from Wall Street, including a downgrade from Macquarie and a price target cut from Citigroup, though Barclays slightly raised its target to $4.
Looking ahead, Nio continues its global expansion, recently announcing a partnership with Thonburi Group to enter the Thailand market. As the company pushes for a strong 2025 finish, investors are weighing these strategic growth milestones against broader market challenges.
Benzinga Edge Rankings: Benzinga Edge rankings indicate a strong Momentum score of 77.70 for Nio.
NIO Price Action: Nio shares were up 1.49% at $5.11 at the time of publication on Monday, according to Benzinga Pro data.
From a technical perspective, Nio stock is currently trading approximately 22.7% below its 50-day moving average, suggesting that the stock has struggled to maintain momentum over the medium term.
However, it is trading about 1.5% above its 200-day moving average, which may provide a level of support and indicate a potential long-term bullish trend if it can sustain above this level.
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