- NYSE: NIO gained 3.72% during Wednesday’s trading session.
- Chinese ADRs rise as Beijing shows further signs of easing restrictions.
- Nio denies the chip relationship with AMD that surfaced on Weibo.
UPDATE: Nio, one of China’s leading EV upstarts, reported a healthy first quarter earnings beat on Thursday before the market opened. The Chinese company reported adjusted earnings per share (EPS) of $-0.13 on revenue of $1.56 billion. Wall Street had expected a $-0.16 per share loss on $1.48 billion in revenue. Revenue for the quarter was up 24% YoY. Nio delivered 25,768 vehicles in the quarter ending in March. This figure includes 4,341 ES8s, 13,620 ES6s, 7,644 EC6s and 163 ET7s. This means Nio deliveries grew 28.5% YoY and 2.9% from the most recent quarter. For the present quarter Nio said it would deliver between 23,000 and 25,000 vehicles, which is down due to production shutdowns caused by the government’s covid lockdowns in April and May. Management now expects Q2 revenue between $1.47 billion and $1.59 billion. Wall Street had been forecasting revenue of $1.79 billion for the second quarter. Shares are down 1.9% in Thursday’s premarket, presumably due to the lowered guidance.
NYSE: NIO saw its win streak hit four straight days as the Chinese EV maker revs up its momentum ahead of Thursday’s earnings call. On Wednesday, shares of Nio added a further 3.72% and closed the trading session at $20.38. Expectations are high for Nio after rivals XPeng (NYSE: XPEV) and Li Auto (NASDAQ: LI) both exceeded Wall Street estimates for the quarter.
Stay up to speed with hot stocks’ news!
Stocks took a step back after two positive sessions as all three major indices closed the day in the red. The Dow Jones dropped by 269 basis points, the S&P 500 lost 1.08%, and the NASDAQ posted a 0.73% loss during the session.
Chinese ADRs were on the rise on Wednesday as Beijing showed further signs of easing up on its regulations and supporting tech companies once again. Stocks like JD.com (NASDAQ: JD), PinDuoDuo (NASDAQ: PDD), and Alibaba (NYSE: BABA) were all trading well higher during the session. Alibaba led the way with a 14.67% surge after China handed out more domestic gaming licenses to tech companies. Investors are clearly optimistic that this could mean Chinese ADR stocks are turning a corner after many of them hit rock bottom during the recent correction.
NIO stock price
After reports surfaced earlier in the week that Nio had reached a partnership with chip maker AMD (NASDAQ: AMD), the EV maker is now denying these claims. It is an especially odd situation because AMD released a video on the Chinese social media platform Weibo. Nio has since asked AMD to remove the video from the platform.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
