Despite the ongoing struggles in the electric vehicle (EV) industry, 2024 has been labeled as an especially challenging period, known as the ‘EV winter.’ Nearly every company in the sector has seen their stock prices plummet, including Tesla Motors, headed by Elon Musk, which has remained in the red despite achieving record deliveries in late 2023 and attempting to rebrand as a robotics and artificial intelligence (AI) firm in 2024.
Given the current circumstances, Nio, a Chinese EV manufacturer, surprised many with its recent delivery figures, providing a much-needed boost of optimism. On July 1, Nio announced that it had delivered 21,209 vehicles in June and 57,373 vehicles in the second quarter of 2024.
These figures are not only impressive on their own but also demonstrate significant growth compared to Nio’s previous performance. June’s delivery numbers represent a 98% increase compared to the same month in 2023, while this year’s second quarter outperformed the previous year by 143.9%.
The positive impact of this report was immediately reflected in the pre-market trading on Monday. At the time of publication, Nio’s shares have risen by 4.57%, with the stock price currently standing at $4.35.
Although this increase has not significantly impacted Nio’s overall decline in 2024, where the company has lost 50.59% of its value since January 2 in the stock market, it does provide hope for a potential rebound to reach $5, a value not seen in over a month.
This recovery seems increasingly likely, especially considering the analyst consensus, which predicts that Nio’s stock will surpass $6 within the next 12 months. The overall forecast is expected to become more positive after incorporating the latest delivery figures.
However, Nio’s shares still face challenges as they must overcome a strong downward trend that has developed in recent weeks to maintain their current modest gains and potentially reverse some long-term losses.
Technical analysis from TradingView indicates that Nio is generally considered a ‘sell’ or ‘strong sell.’ Moving averages remain pessimistic regardless of the assessment timeframe, but oscillators lean towards ‘sell’ based on the latest 24 hours of trading and ‘buy’ over the last 30 days.
Although Nio’s stock performance remains uncertain, it is important to note that this article does not provide investment advice, and investing in stocks always carries a certain level of risk.
