Why Nio Shares Rose Tuesday
Nio (NYSE: NIO) releases its first-quarter update Thursday morning, and investors should be expecting added volatility. The report comes after some of its Chinese peers released their own updates, so investors have some ideas on what to expect. Nio's American depositary shares (ADSs) are moving higher today in anticipation. As of 3:12 p.m. ET, Nio ADSs were 1.7% higher, after having moved up 2.5% earlier today.
Nio investors might be expecting good news from the first quarter after competitors XPeng and Li Auto both beat estimates. It isn't so much first-quarter results that might be adding to volatility, but rather what the company will say about the difficult current second quarter. Chinese EV makers have had to adjust production schedules around supply chain disruptions prompted by COVID-19 lockdowns in the second quarter. Investors reacted negatively to what competitor XPeng said about the second quarter when it reported its first-quarter results on May 23, 2022. XPeng shares tumbled 5.5% following that report.
Image source: Nio.
Source Fool.com
