Why Nio Stock Rocketed Today

Nio Stock NYSE:NIO

Nio Stock (NYSE:NIO)

The news that Nio (NYSE:NIO) and other electric vehicles (EV) manufacturers have published production and delivery updates over the last few days caused the Nio stock. This Chinese company makes electric vehicles (EVs), which surged by 9% early on Tuesday. As of 3:03 p.m. Eastern Time, Nio stock prices had not reversed their earlier gain of 7.4% for the day.

Then What?

With its delivery statistics update for the third quarter, Nio (NYSE:NIO) was the first manufacturer to make its report public throughout the weekend. With 10,878 electric vehicles (EVs) shipped for September, Nio matched for the second-highest month for deliveries, after only June 2022’s 12,961 deliveries of EVs. In November 2021, the business maintained the same level of delivery as in the previous month. Since the autumn of last year, the company’s production has been negatively hampered due to various challenges, including restrictions on the supply chain and COVID-19 lockdowns in China. Investors in Nio stock are relieved to see that the firm has returned to that level of deliveries presently, particularly because new models have only very recently been introduced.

What’s Next?

Nio’s total for September includes over 1,900 units of its ES7 SUV model, manufacturing of which had recently begun at scale in August. This year was also the first year the corporation offered smart electric cars, and now sales of such vehicles are starting to increase. It shipped more than 2,900 ET7 models and began distributing the smaller mid-size ET5 models in September, with 221 units sent thus far.

Nio (NYSE:NIO) has also begun to extend its business outside of China, and this year has seen an increase in the number of deliveries made in Europe. Investors may be beginning to see the firm as more of a participant on the world stage, which helps explain today’s movement in the stock price. This week, many automobile manufacturers, including Ford Motor Company and Tesla, have issued delivery updates to the public. Both are reporting continued growth in the market for electric vehicles, which is excellent news for Nio stock in the long term.

Featured Image-  Megapixl @ Michaelvi

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About the author: I'm a financial journalist with more than 1.5 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.