Electric vehicle (EV) sales have been slowing around the world. EV makers have even been cutting prices in China, the world’s largest EV market, to spur sales. But Nio (NYSE: NIO) just surprised investors with a strong month in April, and the stock is spiking as a result.
Nio American depositary shares (ADS) were trading higher by 13.2% as of 3:32 p.m. ET after the report. That move has added to a strong rally seen in the shares over the last several weeks.
Nio EV deliveries shine
One reason for the strong reaction from investors was how Nio fared relative to its competition last month. Nio reported deliveries of 15,620 EVs in April. That was an increase of 135% compared to last year. Competitors XPeng and Li Auto didn’t see nearly that large an increase. They reported year-over-year April shipment growth of just 33% and 0.4%, respectively.
Nio also just started deliveries of its upgraded 2024 ET7 luxury sedan on April 30. That model is meant to attract executive level users. The company says it features “major enhancements in interior and exterior design and digital cockpit.”
The enhanced ET7 could be another catalyst to continue sales growth in the coming months. Nio also began a new partnership in late April with global luxury EV maker Lotus Technology to share its charging and swapping services.
Even after a nearly 40% jump over the last two weeks, Nio shares remain lower by about 40% year to date. After a third straight month of increasing deliveries, and new possible catalysts at hand, investors who see EV growth continuing in the coming months and years might want to take a small position in Nio now.
Should you invest $1,000 in Nio right now?
Before you buy stock in Nio, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nio wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $529,390!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of April 30, 2024
Howard Smith has positions in Nio and XPeng. The Motley Fool has positions in and recommends Nio. The Motley Fool has a disclosure policy.
Why Nio Stock Soared Today was originally published by The Motley Fool
Source: finance.yahoo.com