U.S. depository receipts penetrated the bear market deeper on Tuesday, but Wall Street is focusing on the ‘impressive’ hopes of the Chinese electric car maker for its first quarter.
Nio NIO,
reported a 133% increase in fourth-quarter revenue and a wider-than-expected loss late on Monday. The ADRs traded at $ 44.82 on Tuesday and were recently about 26% lower than their February 9 highest record, $ 62.84, which put them well in the bear market area.
Nine stocks are 5% smaller this year, but have risen 1,045% over the past 12 months, compared to gains of around 3.6% and 26% for the S&P 500 index SPX.
so far this year and in the last 12 months. Nine reached a low of $ 2.37 in 52 weeks on March 23, 2020.
Edison Yu with Deutsche Bank highlighted Nio’s ‘impressive’ quarterly deliveries, which called for deliveries of around 20,000 to 20,500 vehicles, an increase of between 15% and 18% of deliveries in the fourth quarter . This resulted in revenue of between $ 1.13 billion and $ 1.16 billion for the quarter.
Delivery expectations outline ” a very real path to (more than 100,000) deliveries this year, he said.
“We believe it reflects the growing awareness and appreciation of its ambitious brand and ecosystem, which puts NIO on the right track to be a market leader in the China premium segment,” Yu said.
The goal of delivering 100,000 is ‘achievable’, he added.
Dan Ives at Wedbush said Nio’s ‘robust’ fourth-quarter results ‘speak of a transformative EV event playing out in China.’ The EV manufacturer has’ massive headwinds in 2021 as the golden era of EVs takes hold with Tesla, Nio, Xpeng XPEV,
Li Auto LI,
and others who are leading the way in this Chinese market opportunity. ”
Ives said the first-quarter delivery guidance is a positive preview for overall demand for the year. The wind has, among other things, the continued impact of the chips on the world car markets and the recent price reductions of Tesla Inc.
‘The Chinese EV market is set to rise from 4.5% to 10% over the next two years, based on our forecasts, as consumers’ appetite for EV vehicles drops across the board, and it will favored positioned local traders as well as foreign players. (Tesla TSLA,
Ford F,
GM GM,
etc.), ”Ives said.