Don't Buy NIO Stock on a Better-Than-Expected Q3 2019 Sales Report
Shares of Chinese electric vehicle (EV) company NIO (NYSE: NIO) are rallying after a terrible September showing.
After going public last year and raising $1 billion, the start-up has hemorrhaged nearly all of its cash and had just $503 million in cash and equivalents on the books at the end of June 2019. NIO reported a big rebound in deliveries for the third quarter, but that isn't the good news some investors think it is.
NIO's deliveries in Q3 showed a big rebound -- 4,799 in total, up 35% from Q2 -- and the stock saw a double-digit rally as a result. The number included 4,196 of the new ES6 SUV model, as well as 603 of the larger and more expensive ES8.
Source Fool.com
