Nio Inc

Previously in this series, we looked at China’s declining overall vehicle sales for the last eight months.

Amid the global pandemic and somber mood elsewhere, 2020 has been incredible for EV stocks. Their gains have beat the benchmark indices.

In this series, we’ll take a look at the key highlights of NIO’s fourth-quarter earnings release.

In this morning’s Get Real market newsletter, we saw that Disney+ is running the gauntlet while Apple and Microsoft take the Dow to new heights.

Today, electric vehicle maker NIO hosted a media conference to officially launch its 100kWh battery pack.

Baillie Gifford, a Scottish fund, has been cashing in on the EV (electric vehicle) trend with its huge bets in Tesla and NIO.

Why is NIO stock up sharply this year? Can investors expect more returns from the Chinese electric vehicle maker?

EV maker stocks, including NIO (NYSE:NIO), Tesla (NASDAQ:TSLA), and Nikola (NASDAQ:NKLA), have seen a meteoric rise this year.

NIO stock has closed with losses for two days now and is down 21.2 percent from its high of $16.44 on Monday. Can NIO get out of bear market territory?

NIO stock is on fire. With a 222 percent rise in the stock year-to-date, investors are getting restless. Votes of confidence from big investors are reassuring.

NIO’s upcoming second-quarter earnings and the anticipated pre-orders and pricing for the EC6 could be positive triggers in the near term.

Goldman Sachs analyst Fei Fang downgraded NIO stock from neutral to sell on July 17. Fang cited “over-optimism” in the stock price.

Tesla will likely release its second-quarter results today after the market close. The company’s results could offer insights into NIO’s outlook.

Tesla and NIO stocks have risen sharply this year. Tesla reported a net profit in the second quarter, which makes it eligible for inclusion in the S&P 500.

NIO plans to set up a battery asset management company in August, which should enable NIO to launch a BaaS offering.

Lordstown Motors, which is partly owned by Workhorse, is being acquired by DiamondPeak. See what our analysts suggest based on the pros and cons.

On May 20, the Senate approved new legislation that could force Chinese companies to follow the same rules as other companies listed on the NYSE and NASDAQ.

As part of the endeavor to raise cash, NIO issued ADS last month at an average price of $5.95. The amount is almost half of the current stock price.

Recently, NIO (NYSE:NIO) stock has seen a meteoric rise. The stock has risen 229% YTD—245% of the gains came after its first-quarter results on May 28.

NIO and Tesla seem to be defying the overall downtrend in the Chinese NEV market with their rising sales in June. They have been gained ground in China.

So far, NIO stock has rallied 244% in 2020. However, investors need to watch out for the risk factors after the sharp rise.

NIO stock has been volatile over the last week, and Tesla has been over the last few days. Here’s what’s behind the tug-of-war between bulls and bears.

Tesla is going all out to increase its market share in China. However, to win there, Tesla has to compete with the likes of NIO.

To flourish, any business needs to have an edge or a unique proposition. NIO (NYSE:NIO) might have an edge in battery swap technology.

NIO (NYSE:NIO) stock has risen sharply in the second quarter. So far, the stock has risen a whopping 164%. On a YTD basis, the stock has risen 82%.

One of Baillie Gifford’s big bets among EVs is on NIO (NYSE:NIO) stock. Baillie Gifford is also one of the largest Tesla (NASDAQ:TSLA) investors.

Analysts have a mean consensus target price of $4.92 on NIO stock. Based on Tuesday’s closing price, this would mean a downside of almost 30%.

Tesla (NASDAQ:TSLA) sold 11,095 Model 3 cars in China in May, as reported by Reuters. The company sold about a third of the cars in April or 3,635 vehicles.

NIO stock has been on a fire in June. So far, the stock has gained over 40%. The company recouped its 2020 loses and is up 39% for the year.

Although NIO (NYSE:NIO) and Tesla (NASDAQ:TSLA) are both electric vehicle producers, stock markets have a different view of the companies.

On Thursday, China announced a new subsidy structure for electric vehicles. NIO stock fell almost 1.0%, while Tesla stock fell 3.6% after the news.

NIO stock (NYSE:NIO) has fallen almost 27% this year. Tesla has also pared nearly all of its 2020 returns. NIO will likely release its Q4 results tomorrow.

Last week, Tesla (NASDAQ:TSLA) stock fell 22.3% and had its second-worst weekly fall. On March 7, Musk said that the coronavirus panic was ‘dumb.’

Tesla (NASDAQ:TSLA) and its CEO Elon Musk frequently stir up controversies. After a relative lull, Musk has stoked a controversy with his tweet about the coronavirus.

Tesla’s (NASDAQ:TSLA) stock price fell by more than 25% last week. The stock underperformed the S&P 500 and the Dow Jones Index.

While TSLA stock bulls see the rise as fundamental, bears and many observers are calling it a “speculative bubble.” So, where do we draw the line?

Tesla stock is always in the news. Currently, the entire world is talking about the company’s Cybertruck. The preorders have crossed 250,000.

In today’s Get Real, we took a closer look at Uber’s trouble and an unexpected boost for Canopy Growth while markets react to more unrest.

Encouraging news and upward price action could signal a turnaround for Nio stock, but don’t get ahead of yourself. Nio’s future remains uncertain.

Slamming gas-powered cars looks like Tesla’s new favorite pastime. Yesterday, the company targeted internal combustion engine vehicles once again.

Tesla plans to double the number of repair and maintenance shops in China. It also plans to add about 100 charging stations in China.

NIO plans to enter the self-driving market. A partnership with Intel’s Mobileye boosted the stock by more than 25% today.

The Porsche Taycan is set to be unveiled later today. The model is expected to be a competitor to Tesla’s Model S, joining a long list of “Tesla killers.”

Nio stock has lost half of its value in the past week, and it’s notched a new record low that’s well below its IPO price. Should you cut your losses?

Tesla (TSLA) changed the EV (electric vehicle) game in the US. Ford (F) and General Motors (GM) ventured into EVs as a way to cut emissions.

Tesla’s Q3 deliveries came in at 97,000 on Wednesday, beating its record of 95,200 in Q2. Its stock fell 5% in after-hours trading after this report.

Citing Piper Jaffray, CNBC reported on September 26 that Tesla’s China deliveries were up more than 175% year-over-year in the third quarter.

On September 26, Tesla (TSLA) rolled out its version 10 software update—its biggest software update ever—which customers were eagerly awaiting.

Yesterday, electric truck maker Rivian revealed that it had landed an investment of $350 million from automotive services company Cox Automotive.

In addition to China’s passenger vehicle sales, its sales of NEVs (new energy vehicle) also fell for the second straight month in August.