September 5 was scheduled for Nio‘s (NYSE: NIO) Q2 earnings report release before markets open in the U.S., and it brought some new records and a few pleasant surprises.
Nio stock reacted positively to the news, as the gains of 2.17%, which set its price at $4.24 on September 4, were further bolstered by a 3.07% advancement in the pre-market trading.
The Q2 report revealed that Nio reported adjusted earnings per share (EPS) of $0.30, slightly better than the estimated $0.31.
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Revenue reached $2.4 billion, just below the expected $2.44 billion; however, it marked a significant 98.9% increase year-over-year.
For the third quarter, Nio provided a revenue forecast between $2.63 billion and $2.71 billion, exceeding the $2.54 billion estimate, with projected vehicle deliveries between 61,000 and 63,000 units, representing a year-over-year growth of 10% to 13.7%.
New records for Nio
In some of the most recent developments, Nio achieved record deliveries of 57,373 vehicles in Q2 2024, securing over 40% market share in China’s premium battery electric vehicle (BEV) segment priced above RMB 300,000 ($42,274).
The company is also expanding its charging and battery-swapping network in China through the Power Up Counties initiative.
Additionally, Nio launched its new ONVO brand, which has opened 105 stores and introduced the L60 model to the market, signaling its continued growth and innovation in the electric vehicle sector.
Highlighting the success during the previous quarter, CEO William Bin Li said:
“In the second quarter of 2024, NIO achieved a record-breaking delivery of 57,373 premium smart electric vehicles, securing over 40% of the market share in the battery electric vehicle segment priced above RMB 300,000 in China.”
Li added, “NIO’s core competitive advantages in technology, product, service, and community are earning increasing recognition from users, driving the continued strong vehicle sales performance.”
The question arises of whether NIO stock reaches the $5 threshold, considering many positive developments surrounding the company and whether they will manage to rekindle investors’ sentiment.
Technical analysis of NIO stock
Recent gains for NIO shares have reflected positively on its technical chart, which shows that NIO stock is trading close to the resistance zone of $4.24. If the pre-market gains hold, this zone will be surpassed, while $3.83 is a support level in case of a potential reversal.
Bullish sentiment is further supported by the current share price above NIO stock’s 50, 100, and 200-day simple moving averages (SMAs), further solidifying the upward trend.
The relative strength index (RSI) shows a reading of 58.69 at the latest close, indicating that the stock is neither oversold nor overbought but rather in a neutral zone.
Further examination of technical indicators points towards a “buy” rating, indicating that the current trader’s sentiment works in favor of Nio shares and presents a favorable entry point, where continued investments from the retail sector could propel its price toward the $5 threshold.
Considering that Wall Street analysts have a “moderate buy” on the stock and an average price target of $6.22, which represents a 46.70% potential upside, the prospects of NIO stock reaching $5 become even stronger.
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