Why NIO Stock Is Higher Today

December became once a truly resplendent month for China’s homegrown Tesla rival.

What came about

Shares of Chinese language electric-vehicle maker NIO (NYSE:NIO) were buying and selling bigger on Monday after the firm acknowledged that it dwelling a unique month-to-month file for deliveries in December. As of 10: 45 a.m. EST, NIO’s American depositary shares were up about 11.1% from Friday’s closing tag.

So what

NIO acknowledged that it ended 2020 on a high portray, with 7,007 vehicles delivered in December, a 121% enlarge from a year previously and a unique month-to-month file for the firm.

That total involves 2,009 of NIO’s flagship ES8 SUVs, 2,493 of its midsize ES6 SUVs, and a pair of,505 of its most recent model, the sporty EC6 crossover. 

A blue NIO EC6, a sporty upscale five-passenger crossover SUV with a sloping, coupe-like roofline.

NIO launched its most recent model, the EC6, in September. The sporty crossover has mercurial turn out to be its bestseller. Image source: NIO, Inc.

Of portray for auto investors: Over 40% of NIO patrons in December opted for the firm’s batteries-as-a-provider option, which enables patrons to hold a vehicle with out a battery (at a reduced tag) with a subscription to NIO’s battery-swap provider. This option helps in discovering NIO vehicles more sensible upfront, while growing an ongoing earnings movement for the firm. 

NIO has over 150 automatic battery-swap stations working in China. The force-in stations can “recharge” a NIO by swapping in a weird battery in about 3 minutes, severely much less time than it would possibly perchance well eliminate to recharge at a charging dwelling. 

Now what

NIO acknowledged that this will doubtless show its subsequent unique model, a sedan, at its annual “NIO Day” occasion on Saturday. The firm acknowledged this will doubtless furthermore update investors and possibilities on the station of its self-using pattern program and various unique applied sciences on the occasion.

NIO is anticipated to file its fourth-quarter and corpulent-year financial ends up in mid-February.

John Rosevear has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”>

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