NIO stock gained 9% on Monday, and shares are up 27% over the past month as investors reinvest in growth stocks. The car manufacturer has begun inviting China-based media to ‘NIO Power Day’ on July 9, fueling the positive sentiments around the stock.
In comparison to NIO’s climb, the S&P 500 gained 0.2% on Monday and is up 2% for the month. The fact that call option volume increased over 200% on Monday compared to Friday is one of the main reasons NIO shares may be more volatile.
NIO has now broken sharply upwards after trading sideways for a few days. Also, it is currently being traded above SMA 20, indicating short-term bullish sentiments. However, it is worth mentioning that the buying volume is not so high; hence, sellers are ‘resting’ before their next move.
NIO’s energy service system
The company revealed the date for the company’s forthcoming ‘Power Day’ event in Shanghai yesterday. Investors appear to be eagerly penciling this day into their calendars for the company’s portfolio of vehicle-charging products and services.
Indeed, this event will showcase its products, technologies, and layout plans related to energy replenishment, according to the invitation. Moreover, it will also commemorate the third anniversary of NIO Power charging and supercharging stations, battery exchange sites, mobile charging care, and NIO Cloud.
These services are the foundation upon which NIO stock has risen to its present level, and investors appear to be on the lookout for any fresh announcements from the firm in the coming weeks.
Although it remains to be seen what will be announced, Tesla’s (NASDAQ: TSLA) rival remains one of the most sought-after EV stocks for a reason.
NIO’s return on investment
As per our previous research, between June 2020 and June 2021, among the selected car manufacturers, China-based NIO had nearly double the returns at 539.13% than its closest competitor Tesla whose shares returned 224.93%. Ford Motor came third with 152.28% returns, followed by General Motors at 141.08% and Volkswagen AG at 116.62%.
Generally, the Chinese electric vehicle market is enormous, with China now controlling more than 40% of the worldwide EV market, behind Europe only marginally. Given the country’s anticipated growth rate of more than 50% this year, the Chinese EV market is expected to be the largest and one of the fastest-growing in the world.
Overall, while an increase in options trading is not a perfect explanation for the stock’s rise, it did assist shares in climbing on Monday. At the same time, investor anticipation for this company appears to be high ahead of their ‘Power Day,’ with many investors pricing in some sort of surprise right now.