Why NIO Stock Skyrocketed 65.2% in November

The electric car inventory field a new list high final month, nevertheless shares maintain since misplaced ground.

Keith Noonan

What took field

Shares of NIO (NYSE:NIO) rose 65.2% in November, based mostly totally mostly on data from S&P Worldwide Market Intelligence. The Chinese electric car (EV) inventory posted explosive beneficial properties due to rumors of a swiftly entry accurate into a new geographic market, a solid quarterly list, and momentum for the broader market. 

^SPX Chart

^SPX data by YCharts

InsideEV published a list on Nov. 3 mentioning that NIO is heading in the accurate direction to enter the European market in 2021. NIO then published third-quarter earnings shut to the heart of the month, delivering results for the duration that topped the market’s expectations. Steering for Q4 furthermore came in ahead of Wall Avenue’s targets.


Describe source: NIO.

So what

InsideEV’s list early in November claimed that NIO has already laid the foundations to delivery out its alternate in Europe and is heading in the accurate direction to originate up promoting vehicles in the territory in the 2d half of next year.  The car inventory bought a vital enhance following the media outlet’s list and continued to climb in the lead up to the company’s third-quarter list. 

NIO published Q3 results on Nov. 17, delivering results that topped the market’s expectations. The corporate posted a non-GAAP (adjusted) loss per part of $0.12 on income of $666.6 million, whereas the frequent analyst estimate had targeted a per-part lack of $0.15 on sales of $628 million. The corporate furthermore delivered 12,206 vehicles in the quarter. The inventory dipped at the moment after the earnings unlock due to a sell-off for the broader market, nevertheless it indubitably rapidly rebounded and field a new lifetime high. 

Now what

NIO inventory has dipped in December. The corporate’s part designate has dipped roughly 5% to this point despite a gallant car shipment update early in the month. 

^SPX Chart

^SPX data by YCharts

NIO delivered 5,291 vehicles in November, up 109.3% year over year. The corporate has delivered 36,721 vehicles thru the first 11 months of the year. Complete deliveries for the company’s ES8, ES6, and EC6 had reached 68,634 as of Nov. 30. Even with the impressive delivery update, the company’s part designate has dipped as market enthusiasm for faraway places EV stocks has waned. 

NIO is guiding for fourth-quarter sales to return in between $921.8 million and $947.9 million. It’s furthermore guiding to bring between 16,500 and 17,000 vehicles — up roughly 103% year over year on the midpoint of the target. 

NIO is valued at roughly $58.6 billion and is shopping and selling at roughly 24 occasions this year’s expected sales.

Keith Noonan 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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