NIO Stock: Chinese electric vehicle manufacturer NIO (NYSE: NIO) shares were trading higher on Thursday, after the company posted June and second quarter sales figures that surpassed the estimates of analysts and their own guidance.
Ab 1:15 p.m. EDT, the American depositary shares of NIO were up approximately 16.7 percent from the closing price of Wednesday.
NIO said it delivered 3,740 of its luxury electric SUVs in June, up 179 percent from a year ago and the company’s highest of all-time monthly deliveries. The result lifted its second quarter deliveries to a total of 10,331 cars, 191 percent higher than the year-ago era and its best quarterly result ever.
Auto investors have every right to cheer on the news. By the beginning of 2020, when its cash reserve dwindled and the consequences of the COVID-19 outbreak in China threatened to drive it to the verge of bankruptcy, NIO had come a long way.
Yet after receiving nearly $ 1 billion in new funding from the economic development authorities in April, and beginning to pay off with last year’s ambitious investments in an enlarged distribution network, NIO seems to be on a roll.
Investors now look forward to results and there is more reason to be positive about that. Noting that NIO’s second-quarter net revenues surpassed the company’s expectations, CFO Steven Feng said on Thursday that he is optimistic that the company will reach or surpass its gross profit margin and “operational efficiency.” goals.
NIO has not yet set a date for its second-quarter earnings report but in the second half of August it is expected to happen sometime.
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