NIO Stock News and Forecast: Shares rise as Li Auto's profit raises expectations of Nio's, due Monday


  • NIO is a Chinese electric vehicle designer and manufacturer.
  • NIO is a favoured stock among retail investors.
  • NIO will announce Q4 2020 results on Monday, March 1.

Update, February 26: Nio Inc (NYSE: NIO) has kicked off Friday's session with an upswing after falling sharply on Thursday along the broader stock market. Rival Chinese EV-maker Li Auto reported a surprising profit and as both firms compete in different market niches, expectations from Nio are higher as well. If Li can sell more SUVs, Nio may show it can roll out more luxury sedans. 

NIO is a Chinese electric vehicle manufacturer and designer. Electric vehicles are now more mainstream and are seen as the future of the automobile industry. The other main trend in the auto sector has been the development of autonomous driving vehicles. NIO is developing the NIO EVE its vision for the future of autonomous driving. NIO says itself that "The future is in smart, electric and autonomous vehicles, and we aim to lead the way."

NIO Stock News

NIO and other electric vehicle stocks had a stellar rise in 2020. Tesla, the big daddy of the sector, signed for a 600% plus gain in 2020. NIO itself saw its shares rise over 1000% in 2020! 

But investors have appeared to cool on the EV sector of late, or at least take profits after meteoric gains. NIO began 2021 at just over $50 and is now slightly lower at $44.33. Just for comparison, NIO began 2020 at under $5, so the negative performance for 2021 has to be taken into context. 

NIO Stock Forecast

NIO will release Q4 results on Monday. Past results have shown strong sales growth. NIO's own investor relation website states "NIO delivered 7,225 vehicles in January 2021, a new monthly record representing a strong 352.1% year-over-year growth. The deliveries consisted of 1,660 ES8s, the Company’s 6-seater and 7-seater flagship premium smart electric SUV, 2,720 ES6s, the Company’s 5-seater high-performance premium smart electric SUV, and 2,845 EC6s, the Company’s 5-seater premium electric coupe SUV. As of January 31, 2021, cumulative deliveries of the ES8, ES6 and EC6 reached 82,866 vehicles."

Again taking from NIO's own website we can see recent results have been strong and growing and investors will look for this trend to continue with Q4 earnings. Sales and revenues have shown strong growth and importantly so have margins (the amount of profit per vehicle sold). The above is in RMB currency, not USD.

The latest estimates for Q4 results from Benzinga are for EPS of -$0.09 and revenue of $993.96 million. Again it should be noted results will be reported in RMB and converted into US$. 

The results are due to be released after the market closes on Monday.

 

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