NIO

NIO Inc.

24.08
USD
4.47%
24.08
USD
4.47%
11.67 55.13
52 weeks
52 weeks

Mkt Cap 32.79B

Shares Out 1.36B

Chat
Send me real-time posts from this site at my email

Here's Why Nio Shares Jumped Monday

What happened Momentum has been building in Nio's (NYSE: NIO) electric vehicle (EV) business, but the stock itself has been facing headwinds that have held it back. Some of those headwinds may be abating, and investors are pushing Nio shares up Monday as a result. After popping 9% to start the trading week, Nio American depositary shares were still 8.2% higher as of 11:05 a.m. ET. So what There are reports that Chinese regulators intend to make it possible for U.S. regulators to audit Chinese companies, which could prevent Chinese shares from being delisted from U.S. exchanges. With that news, investors seem to be getting past that overhang in many U.S.-listed Chinese names, including Nio. Those reports, along with underlying company progress, prompted UBS analyst Paul Gong to upgrade the Chinese EV maker to a buy recommendation today. Investors are taking notice and juicing the stocks gain today. Now what Gong lowered his price target on the stock, but the new $32 per share price would still represent a 46% gain over Friday's closing share price. The analyst wrote that the 44% drop in Nio shares over the past year offers investors a good level to buy, Thefly.com reports. Gong also feels that sales volumes should accelerate as Nio begins deliveries of its three new products this year. That includes the ET7 luxury sedan that began shipping last week, as well as the ET5 mid-size sedan, and ES7 SUV that should also stoke sales when they become available. Nio will also be launching its next-generation technology platform with these new models. The growth catalysts for Nio's business aren't new, but the stock price hasn't reflected the growing potential partly because investors fear U.S. regulators could add Nio to a growing list of Chinese names that could face delisting from U.S. stock exchanges. Bloomberg reported over the weekend, however, that a change being sought by Chinese regulators would allow the access to audit data that the Securities and Exchange Commission (SEC) is requiring. The potential removal of that headwind has investors taking Gong's advice and buying Nio today. 10 stocks we like better than Nio Inc. When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Nio Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of March 3, 2022 Howard Smith owns Nio Inc. The Motley Fool owns and recommends Nio Inc. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue