Why Nio Stock Is Rebounding Friday
Shares of Chinese electric vehicle (EV) maker Nio (NYSE: NIO) were hammered after the company released its quarterly earnings and business update earlier this week. But the stock is rebounding in a big way today, and the stock might even end the week higher than where it began. As of 11:35 a.m. ET Friday, Nio's American depositary shares are higher by 5.1% for the day.
Though investors were disappointed with Nio's near-term outlook this week, today's rebound may be coming from a reminder of its long-term plans after the company released an update on its brand ecosystem yesterday.
Nio reported a higher loss on lower sales than expected in the fourth quarter. Perhaps more significant was its projection for 2023 first-quarter deliveries. The company expects to ship up to 33,000 EVs in the first quarter, but that would be a meaningful sequential drop versus fourth-quarter 2022 deliveries of over 40,000. But yesterday's update reminded investors that Nio is still expanding its global infrastructure as it adds power swap stations, charging locations, customer-gathering Nio Houses, and service centers in Europe.
Source Fool.com
