On February 20, NIO (NIO), a Chinese electric carmaker, was trading on a bullish note. The stock posted a day high of $7.77—up ~7.0% from the closing price the previous day. Let’s find out what could be driving NIO stock. NIO is popularly known as “Chinese Tesla.”
Key reasons for the optimism
On February 19, NIO revealed that it’s fifth on a list of the most innovative companies in China for 2019 by Fast Company—an American business magazine. In a press release on February 20, NIO highlighted its innovations and achievements in 2018. According to Fast Company’s deputy editor, David Lidsky, “Established players are showing the same kind of nimbleness that we’ve generally associated with startups.”
Currently, NIO offers two electric SUV models in China—ES8 and ES6. Both of the SUV models are priced lower than Tesla’s SUV—Model X.
NIO is scheduled to announce its fourth-quarter earnings results on March 5. Investors’ high expectations from the company’s upcoming earnings could be another reason for the recent optimism in its stock.
As of February 19, NIO has risen 14.0% sequentially compared to Tesla’s (TSLA) 8.2% losses. Other Chinese companies including Tencent Holdings (TCEHY), Alibaba (BABA), and Baidu (BIDU) have risen 9.6%, 24.2%, and 8.7% sequentially, respectively, while Uxin (UXIN) has fallen 18.1%.