Nio Inc. investment receipts went. America deepened into the bear market Tuesday, but Wall Street focused on the “impressive” hopes of the Chinese electric car maker for sale in the first quarter.
Nio NIO,
late Monday it reported a 133% jump in revenue in the fourth quarter and a broader-than-expected loss. The ADRs traded as low as $ 44.82 on Tuesday and were recently off about 26% from their Feb. 9 record closing a high of $ 62.84, placing them well in the bear market range.
Nio shares are 5% in the red this year, but have gained 1,045% in the last 12 months, compared to improvements of around 3.6% and 26% for the S&P 500 SPX index,
so far this year and in the last 12 months. Nio hit a 52-week low of $ 2.37 on March 23, 2020.
Edison Yu with Deutsche Bank marked Nio’s “impressive” first-quarter lead, which called for the delivery of around 20,000 to 20,500 vehicles, an increase of between 15% and 18% from fourth-quarter delivery. It accounted for revenue between $ 1.13 billion and $ 1.16 billion for the quarter.
The delivery expectations outline “a real path to (over 100,000) delivery this year, he said.
“We believe this reflects a growing awareness and value of their ambitious brand and ecosystem, setting NIO on the path to becoming a market leader in a key sector. China, ”said Yu.
The goal of delivering 100,000 is “achievable,” he said.
Dan Ives at Wedbush said Nio’s “strong” fourth-quarter results “speak to EV’s transformational opportunity to play outdoors in China.” The EV manufacturer has “big tailwinds” into 2021 as the golden age of EVs catches up with Tesla, Nio, Xpeng XPEV,
Li Auto LI,
and others who rely on this opportunity in the Chinese market. ”
Ives said first-quarter delivery management was a positive outlook for total demand in the year. Headwinds include the continuing impact of chip shortages on global automotive markets and recent price cuts at Tesla Inc.
“The Chinese EV market is set to go from 4.5% to 10% in the next 2 years based on our forecasts, as consumer desire for EV vehicles across the board continues to grow. falling down and benefiting domestic sellers in a good position as well as foreign players. (Tesla TSLA,
Ford F,
GM GM,
etc.), ”said Ives.