NIO Stock Price and News: Nio soars as it reports record August orders despite chip shortage

NYSE:NIO gained 3.25% on Thursday as the broader markets pushed higher.
Nio confirms that it took in its highest order total yet, despite lower deliveries.
Domestic rival BYD looks to move into the luxury EV sector.

Stocks Reporter FXStreet

Update September 30: Nio Inc (NYSE: NIO) has kicked off Friday's session with a lack of direction – but that could be a positive development. The lack of a meaningful downside correction is a bullish sign for shares of the Chinese EV-maker. Why? The price won a hard-fought battle to recapture the $40 level and is not letting go so fast. Tensions between China and the US have faded from the headlines, allowing some breathing space.

NYSE:NIO rebounded nicely from its pull back on Wednesday after reporting a lower than expected number for August vehicle deliveries. On Thursday, shares of Nio outpaced the Chinese EV sector and gained 3.25% to close the session at $40.35. It was a tough day in general for Chinese ADRs as AliBaba (NYSE:BABA), PinDuoDuo (NASDAQ:PDD), JD.Com (NASDAQ:JD), and Didi (NYSE:DIDI) all traded below water. The sector started the week with a three-day winning streak so some consolidation is to be expected, especially as most of the ADRs are making their way back from several-year lows.

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The big hit on Wednesday came on the news of a lower than expected August delivery figure for vehicles, as well as lower guidance for the rest of the year. Like other companies, Nio cited the global chip shortage as well as lingering supply chain issues as to the reason it was lowering guidance. The company did explain that while deliveries were lower, August orders hit a new all-time high. It seems it was easy to assume that lower deliveries meant lower orders, but Nio reassured its shareholders that this is far from the truth.

NIO stock forecast

Nio’s domestic rival and Warren Buffett backed BYD reported that it is looking to get into the luxury EV sector. Until now, BYD has led China in EV sales, selling more than Nio, Li Auto (NASDAQ:LI), and XPeng (NYSE:XPEV) combined. The move to luxury EVs could spell some trouble for higher end brands like Nio and Tesla (NASDAQ:TSLA), so this could be something to monitor for Nio shareholders.

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Stocks Reporter

FXStreet

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