NIO (NYSE:NIO), the largest competitor of Tesla in China, is not a stranger to scorching stock price rallies. After all, the stock has registered year-to-date gains of 152.15 percent. Even so, the recent rally is one for the history books.
As an illustration, NIO registered a gain of 18.58 percent or $1.47 on Thursday, the last working day before the 04th of July holiday. Today, the stock is up an astonishing 22.17 percent or $2.08 in the pre-market, as of 08:38 a.m. ET.
NIO shares are benefitting from very healthy growth in Q2 deliveries, registering an annual increase of 190.8 percent and culminating in the delivery of 10,331 EVs. In June alone, NIO delivered 3,740 EVs, consisting of 2,476 ES6s and 1,264 ES8s, thereby, establishing a new monthly record
Steven Feng, the Chief Financial Officer (CFO) of NIO, said in a press release:
“We are pleased to deliver solid results driven by our competitive products, superior services, and expanding sales network. Our deliveries in the second quarter of 2020 exceeded the high end of our earlier projection, and we are confident that our goals on gross margin and operational efficiency will be achieved.”
What is even more astonishing is the fact that these gains are being accumulated in a macroeconomic environment that is far from ideal and scarred by the financial retrenchment associated with the ongoing coronavirus (COVID-19) pandemic.
This development only adds to the overall investor euphoria surrounding NIO shares. For instance, toward the end of June, the company disclosed that its investors have largely completed the requisite cash injection. Specifically, NIO (Anhui) Holding Co. Ltd. – the EV giant’s holding company – has already received 4.8 billion renminbi in funding with the residual 200 million renminbi expected to materialize by September 2020.
Nonetheless, given the company’s stretched valuations on the back of a healthy year-to-date rally, many investors are growing apprehensive regarding further upside potential. Recently, Goldman Sachs joined this club of skeptics. As per the latest investment note by Goldman analyst, Fei Fang, NIO’s growing penetration in China and its healthy financial position bode well for the prospects of the company. However, after a scorching rally over the past few months, the analyst found little potential for further growth in the short-term. Accordingly, Fang downgraded NIO Inc. to Neutral from Buy with a price target of $7. However, given the recent up thrust, it remains to be seen how far NIO can carry its momentum.
The post NIO (NYSE: NIO) – the Chinese EV Giant – Is Adding to Its Massive Gains From Last Week on the Back of a Nearly 200% Increase in Quarterly Deliveries by Rohail Saleem appeared first on Wccftech.
source https://wccftech.com/nio-nyse-nio-the-chinese-ev-giant-is-adding-to-its-massive-gains-from-last-week-on-the-back-of-a-nearly-200-increase-in-quarterly-deliveries/