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Why Nio Stock Is Rising Today
Nio deliveries increased more than 20% year over year in the first four months of 2024. Image source: Nio.
Chinese actions electric vehicle (EV) manufacturer Nio (NYSE:NIO) rose on Monday as investors revisited old meme stocks that enjoyed social media-driven rallies earlier this decade. But the company had recent good news to report.
As of 2:25 p.m. ET, Nio’s American Depositary Shares were up about 6.7% from Friday’s closing price.
A Rise in ‘Meme Stock’ Follows Strong Deliveries
A series of old meme stocks – led by GameStop — were trading sharply higher on Monday after “Roaring Kitty,” a social media personality who has inspired big sell-offs in 2021, posted for the first time in about three years.
Nio was one of many stocks that saw gains during this period. Shares have seen a renewed climb in recent weeks, rising more than 50% from their mid-April low, thanks to stronger-than-expected deliveries and a new incentive program announced late last month by the Chinese government .
Through April, Nio’s deliveries were up 21% year over year. China’s new incentive program, which will last until the end of 2024, offers buyers of electric and hybrid vehicles a subsidy of around a thousand dollars. This could give Nio’s sales an extra boost.
Nio’s low-cost brand will launch later this week
Nio also confirmed last week that its long-awaited lower-priced brand, Onvo, will launch on May 15. The first Onvo model, the L60, will be a “family-centric” crossover designed to compete with Teslaof the Model Y, starting at about $34,600, Nio said.
Nio sells some of its luxury EV models in Europe, but it’s not yet clear whether the L60 or other Onvos will be offered outside of China.
Nio has not yet announced a date for its first-quarter earnings report, but it is expected to happen in late May or early June.
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John Rosevear has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Nio and Tesla. The motley fool has a disclosure policy.
Why Nio Stock Is Rising Today was originally published by The Motley Fool