Shares of Chinese electric vehicle maker NIO (NYSE: NIO) resumed its charges on the rise Monday morning. The stock fell more than 25% last week amid notes from Wall Street analysts urging investors to be cautious.
But investors appeared to have lifted those warnings on Monday morning. As of 11:15 a.m. EDT, shares of NIO’s U.S. custodian were up about 10.6% from Friday’s closing price.
NIO – the company and its actions – has been in tears for the past two months. After starting 2020 in a difficult situation, dangerously strapped for cash and reeling from the COVID-19 epidemic in China, things have turned out well for the courageous electric vehicle company.
NIO decisively addressed investor concerns over auto liquidity, securing nearly $ 1 billion in cash from economic development authorities in China’s Anhui Industrial Province and an additional injection from an early investor Tencent Holdings (OTC: TCEH.Y). And NIO’s sales have recovered well with the pandemic retreating, resuming their growth path and almost tripling in the second quarter compared to a year ago.
NIO shares surged, rising more than 200% from early June to July 10. But NIO shares sold last week, down more than 25%, with at least one analyst warning investors that the company’s stock price had far exceeded what was justified by its fundamentals.
Was this the end of the NIO rally? Apparently not: Late Monday morning, last week’s drop looks more like a correction that may have passed.
After this strong second quarter sales result, NIO investors will be eagerly awaiting the company’s second quarter earnings report. NIO has not yet announced a date for this report, but it will likely happen in the second half of August.
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