Shares of the Chinese electric vehicle (EV) manufacturer Nio have experienced a significant surge, rising by 11.8% as of Thursday afternoon. This increase is the latest in a series of gains for the stock, which has more than doubled since July. The recent uptick aligns with Nio’s announcement of record sales for September, contributing to a historic quarter for the company.
In September, Nio achieved delivery of 34,749 vehicles, marking a remarkable 64% increase compared to the same month last year. This surge in sales has propelled the company to a quarterly total of over 87,000 deliveries, making it a record-setting period for the brand.
The stock rally precedes a strategic move by Nio’s management, who announced a new equity offering that generated over $1 billion. This capital injection is intended to facilitate the development of new technology platforms and vehicle models across Nio’s three brands. Among these is the introduction of two new lower-price brands, Onvo and Firefly, which are designed to appeal to a broader consumer market. Notably, these two brands accounted for 60% of the company’s deliveries in September, indicating their growing importance in Nio’s overall sales strategy.
With the company showing strong momentum in delivery volumes, investor interest has intensified, leading to increased portfolio allocations to Nio stock this week. The positive sales figures and the management’s focus on innovation signal a promising outlook for Nio as it continues to scale its operations and expand its market presence in the competitive EV landscape.
