Why Nio Stock Popped Monday

Patrons are bidding Nio shares up before its quarterly financial change the following day.

Howard Smith

Key Parts

  • Patrons will possible be looking out at to have a study if Nio’s adjusted earnings will become obvious this reporting length.
  • Some traders are promoting Tesla shares this day, and can simply be diversifying into a mode of electrical automobile names.

What came about

Love many automakers, Nio (NYSE:NIO) tempered expectations for its third-quarter deliveries attributable to invent chain constraints. However the firm exceeded that revised guidance when it reported 24,439 automobile deliveries for the third quarter. The firm reports its financial change the following day, and its shares are jumping this day in anticipation. As of 11: 40 a.m. EST, Nio shares were up 3.2% after popping almost 5% earlier in the session. 

So what

Moreover anticipation for Nio’s quarterly financial anecdote, some traders is at menace of be diversifying a ways off from electrical automobile (EV) chief Tesla shares this day after CEO Elon Musk mentioned he could well simply sell 10% of his shares. Tesla shares fell on that recordsdata, and some of those funds could well very properly be going into what some traders hope becomes the Chinese language Tesla. 

Black Nio ES8 electric SUV in front of charging hardware.

Characterize provide: Nio.

Now what

On Oct. 1, Nio urged traders its third-quarter deliveries doubled year over year because it navigated headwinds from the arena semiconductor shortage and a mode of provide chain disruptions. The firm exceeded its previously reduced guidance, and traders are now anticipating the quarterly financial change that comes out the following day. In its 2d-quarter open, Nio reported a non-GAAP (adjusted) fetch loss of about $52 million, and traders will possible be looking out at to have a study if that moves into obvious territory. 

Earlier this month, Nio reported a drop in automobile deliveries in October because it upgraded its manufacturing traces to assemble bigger capability as assign a matter to grows. Patrons will possible be taking a stare for any change on whether November deliveries are abet on the outdated voice trajectory. 

A few of this day’s stock creep is possible anticipating the following day’s anecdote. But with Elon Musk’s every creep monitored, his doable orderly sale of Tesla shares is at menace of be contributing to cash stepping into Nio this day. 

This text represents the realizing of the writer, who could well simply disagree with the “expert” recommendation self-discipline of a Motley Idiot top rate advisory service. We’re motley! Questioning an investing thesis — even one amongst our enjoy — helps us all mediate severely about investing and assemble choices that lend a hand us become smarter, happier, and richer.

Howard Smith owns shares of NIO Inc. The Motley Fool owns shares of and recommends NIO Inc. and Tesla. The Motley Fool has a disclosure policy.”>

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