- NYSE: NIO gained 3.72% during Wednesday’s trading session.
- Chinese ADRs rise as Beijing shows further signs of easing restrictions.
- Nio denies the chip relationship with AMD that surfaced on Weibo.
UPDATE: Nio, one of China’s leading EV upstarts, reported a healthy first quarter earnings beat on Thursday before the market opened. The Chinese company reported adjusted earnings per share (EPS) of $-0.13 on revenue of $1.56 billion. Wall Street had expected a $-0.16 per share loss on $1.48 billion in revenue. Revenue for the quarter was up 24% YoY. Nio delivered 25,768 vehicles in the quarter ending in March. This figure includes 4,341 ES8s, 13,620 ES6s, 7,644 EC6s and 163 ET7s. This means Nio deliveries grew 28.5% YoY and 2.9% from the most recent quarter. For the present quarter Nio said it would deliver between 23,000 and 25,000 vehicles, which is down due to production shutdowns caused by the government’s covid lockdowns in April and May. Management now expects Q2 revenue between $1.47 billion and $1.59 billion. Wall Street had been forecasting revenue of $1.79 billion for the second quarter. Shares are down 1.9% in Thursday’s premarket, presumably due to the lowered guidance.
NYSE: NIO saw its win streak hit four straight days as the Chinese EV maker revs up its momentum ahead of Thursday’s earnings call. On Wednesday, shares of Nio added a further 3.72% and closed the trading session at $20.38. Expectations are high for Nio after rivals XPeng (NYSE: XPEV) and Li Auto (NASDAQ: LI) both exceeded Wall Street estimates for the quarter.
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Stocks took a step back after two positive sessions as all three major indices closed the day in the red. The Dow Jones dropped by 269 basis points, the S&P 500 lost 1.08%, and the NASDAQ posted a 0.73% loss during the session.
Chinese ADRs were on the rise on Wednesday as Beijing showed further signs of easing up on its regulations and supporting tech companies once again. Stocks like JD.com (NASDAQ: JD), PinDuoDuo (NASDAQ: PDD), and Alibaba (NYSE: BABA) were all trading well higher during the session. Alibaba led the way with a 14.67% surge after China handed out more domestic gaming licenses to tech companies. Investors are clearly optimism that this could mean Chinese ADR stocks are turning a corner after many of them hit rock bottom during the recent correction.
NIO stock price
After reports surfaced earlier in the week that Nio had reached a partnership with chip maker AMD (NASDAQ: AMD), the EV maker is now denying these claims. It is an especially odd situation because AMD released a video on the Chinese social media platform Weibo. Nio has since asked AMD to remove the video from the platform.
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