Q2 STOCKS TO BUY

NIO Stock Gets Jolt on Deliveries Update

The Chinese car maker attributed strong growth to expedited shipments before the holiday

Digital Content Manager
Oct 8, 2019 at 9:40 AM
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The shares of electric car maker Nio Inc (NYSE:NIO) are way higher this morning, after the firm's third-quarter deliveries report came in better than expected. Specifically, NIO said it delivered 4,799 vehicles in the third quarter -- a 35.1% boost from the previous quarter -- citing expedited shipments prior to China's national holiday. At last check NIO is up 11.6% at $1.73. 

This pop closely follows a late-September post-earnings bear gap, and subsequent all-time low of $1.19, hit on Oct. 2. The shares were able to bounce off this bottom, but ran out of steam right below the sharply declining 10-day moving average. While NIO is eyeing its first close atop this trendline since mid-September, it's still trading well below its year-to-date breakeven level, with a roughly 72% deficit. 

While only two of the 13 analysts in coverage still consider NIO a "buy" or better -- with Goldman Sachs piping up with a bear note just last week -- the consensus 12-month price target is incredibly high. At $3.42, it nearly doubles last night's close.

Short sellers have been quite active of late, too, with short interest rising 8.5% in the last two reporting periods to 152.62 million shares sold short. These bears are definitely in control right now, with a grip on 22% of NIO's available float, which represents nearly nine days of trading at the stock's average pace. 

 
 

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