Why NIO Stock Is Higher Today

Despite the previous day’s promote-off, NIO traders are soundless having a seek forward to subsequent Monday.

John Rosevear

This text represents the understanding of the creator, who may per chance well per chance well disagree with the “legitimate” recommendation location of a Motley Fool top class advisory carrier. We’re motley! Questioning an investing thesis — even one of our possess — helps us all judge critically about investing and originate choices that serve us change into smarter, happier, and richer.

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What took direct

Shares of Chinese language electric-automotive maker NIO (NYSE:NIO) were transferring elevated on Wednesday, as traders having a seek ahead to the firm’s earnings document subsequent week moved in after Tuesday’s sectorwide promote-off. 

As of 1: 15 p.m. EST, NIO’s American depositary shares were up about 4.7% from Tuesday’s closing tag. 

So what

NIO’s inventory used to be one of many electric-automotive shares rebounding to plenty of levels on Wednesday. The neighborhood supplied off sharply early on Tuesday, as investor considerations about rising U.S. hobby charges hit more speculative shares laborious. Electric-automotive shares confronted additional stress following a interesting decline in shares of class leader Tesla (NASDAQ:TSLA). 

Nothing about NIO’s fundamentals or memoir changed, of course. All of this stuff are soundless good:

and supreme, nonetheless surely no longer least:

  • NIO’s inventory is soundless Trading at a extraordinarily high valuation. 

Li is on stage with a sleek white electric sedan.

CEO William Bin Li confirmed off NIO’s upcoming ET7 luxury sedan at an match in January. The original sedan — and a smaller sibling — are expected in roughly a 365 days. Image source: NIO.

Simply build apart, whereas you were bullish on NIO a week previously, there’s no cause no longer to be bullish now. I judge that realization is why the inventory is bouncing at the moment.

Now what

Auto traders can seek forward to an update subsequent Monday, when NIO reports fourth-quarter and complete-365 days 2020 earnings. I inquire of of it must give some steering for 2021 as effectively. Existing that NIO’s earnings document will likely be launched rapidly after the U.S. markets close, nonetheless — ensuing from the time incompatibility between the U.S. and China — the convention call will no longer happen till 8 p.m EST, or 9 a.m. Beijing time. 

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

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