Electric vehicle (EV) sales are declining worldwide. Electric vehicle manufacturers have even cut prices in China, the world’s largest electric vehicle market, to boost sales. But Nio (NYSE:NIO) just surprised investors with a strong month in April, and the stock is surging as a result.
Nio American Depositary Shares (ADS) were trading 13.2% higher as of 3:32 p.m. ET following the report. This move has contributed to the strong rally in stocks in recent weeks.
Nio EV deliveries shine
One reason for the strong reaction from investors was how Nio performed compared to its competitors last month. Nio reported deliveries of 15,620 electric vehicles in April. This was an increase of 135% compared to the previous year. Competitors XPeng And Li car haven’t seen anywhere near that big of an increase. They reported shipping growth of just 33% in April, or 0.4% year-over-year.
Nio also began deliveries of its upgraded 2024 ET7 luxury sedan on April 30. This model is intended to appeal to executive level users. The company says it offers “significant improvements in the interior and exterior design as well as the digital cockpit.”
The improved ET7 could be another catalyst for further sales growth in the coming months. Nio also began a new partnership with a global luxury electric vehicle manufacturer in late April Lotus technology to share its charging and swapping services.
Even after rising nearly 40% in the past two weeks, Nio shares remain down about 40% year to date. After a third straight month of rising deliveries and new potential catalysts, investors expecting continued EV growth in the coming months and years may want to take a small position in Nio now.
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Howard Smith holds positions at Nio and XPeng. The Motley Fool has positions in and recommends Nio. The Motley Fool has a disclosure policy.
Why Nio Stock Soared Today was originally published by The Motley Fool