Nio (NYSE:NIO)
After hearing discouraging projections from a rival company, investors dumped their Nio (NYSE:NIO) shares yesterday by 3.5%. However, investors appear to be having second thoughts about Nio today as the cryptocurrency itself moves closer to releasing an update of its own. As of 11:20 a.m. Eastern Time on Wednesday, the share price increased by 4.9%, erasing all of the previous day’s losses.
Then what?
XPeng, another Chinese electric vehicle manufacturer, let investors down on Tuesday with its report for the second quarter, which showed a more significant net loss than investors had anticipated. However, investors also focused on the company’s guidance for third-quarter deliveries, which was slightly below expectations. This was a primary concern for investors.
Investors in Nio (NYSE:NIO) reacted to what XPeng said regarding the company’s ongoing struggles to overcome the challenges posed by the implications of COVID-19 in China. However, more research revealed that some factors that pressure XPeng’s vehicle sales might not apply to Nio (NYSE:NIO).
What’s Next?
During a conference call with investors, the CEO of XPeng, He Xiaopeng, stated that problems unrelated to viruses would also contribute to a slowdown in sales during the third quarter. The company informed investors that they should anticipate no more than 21 percent growth compared to the third quarter of 2021 after deliveries in the second quarter nearly doubled year over year.
XPeng’s dismal guidance was attributed to several issues, including the changing seasons and the impending introduction of new models. On the other hand, it’s possible that Nio (NYSE:NIO) doesn’t have those problems. Nio (NYSE:NIO) said this week that it has already dispatched its flagship luxury sedan, the ET7, to the European market, indicating that the business is well on its way to fulfilling customer orders for the vehicle.
During this year, Nio intends to expand its operations in the countries of Germany, the Netherlands, Denmark, Sweden, and Norway. The ET7 is an essential component of that plan, and it will shortly be followed by the ET5 sedan, which is classified as a medium vehicle. When the company has its annual general meeting tomorrow, investors will have the opportunity to hear more from management. However, current market sentiment suggests that investors believe Nio (NYSE:NIO) could have more positive developments in store for them than its Chinese rival.
Featured Image : Megapixl © Timonschneider
Author Shariq Khan 
