Though the electric vehicle (EV) industry has been struggling for more than 12 months, 2024 has generally been recognized as a particularly dire period of the so-called ‘EV winter.’
There has hardly been a company operating in the sector whose stock has managed to remain in the green, with even Elon Musk’s Tesla Motors (NASDAQ: TSLA) staying decisively in the green despite record deliveries at the end of 2023 and the 2024 attempts to rebrand as a robotics and artificial intelligence (AI) firm.
Given the current trends, Nio’s (NYSE: NIO) recent delivery figures may have come as a surprise and a much-needed injection of optimism. Indeed, the Chinese EV maker reported on July 1 that it had delivered 21,209 vehicles in June and 57,373 in the second quarter (Q2) of 2024.
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Along with being respectable numbers in their own right, both are made only more impressive when compared to Nio’s historic performance. The June delivery figures represent a 98% increase compared to the same month in 2023, while this year’s Q2 has been 143.9% better than the last.
Can Nio reclaim $5 after strong deliveries report?
The positive shock of the report was quickly reflected in Monday’s pre-market. At the time of publication, the EV maker’s shares are up 4.57%, and Nio stock price today stands at $4.35.
Though the climb has hardly put a dent in the firm’s overall 2024 decline – a decline that saw the company lose 50.59% of its value since January 2 in the stock market – it may pave the way for reclaiming of $5, a value not seen in well over a month.
Such a recovery appears increasingly likely given that the analyst consensus – reached before the delivery figures were published – indicates a general expectation Nio stock will cross above $6 in the coming 12 months. The overall forecast is likely to turn more bullish after the latest developments are factored in.
Nonetheless, the EV maker’s shares have their work cut out for them given they will have to break a strong downtrend that has developed in recent weeks if they are to maintain their current, modest gains, let alone reverse some longer-term losses.
Indeed, the technical analysis (TA) of Nio retrieved from TradingView reveals that the Chinese company is generally considered either a ‘sell’ or a ‘strong sell’ overall. Still, while moving averages (MA) remain fixed on a negative outlook no matter the time frame used for the assessment, oscillators lean toward ‘sell’ when based on the latest 24 hours of trading, but the last 30 days turn them to ‘buy.’
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
