NIO Stock Alert: What’s Up With Electric Vehicle Maker Nio Today?
The most recent coverage of the electric vehicle race has focused on prominent American names, such as Rivien (NASDAQ:RIVN) and Lucid engines (NASDAQ:LCID). While one company had a more difficult time last week than some of its competitors, it is off to a much better start this week. China-based EV manufacturer Nio (NYSE:NIO) hadn’t performed well for most of November, but recent speculation has driven NIO shares up as rumors of a new sedan begin to circulate the web.
What’s going on with NIO Stock
After gaining some momentum over the weekend last Friday, NIO action continued to gain momentum this week.
As of this writing, stocks are up over 7%. Since the end of October, however, Nio has seen a lot of volatility with several extreme peaks and lows. With today’s strong start, however, his overall earnings for the month are just under 5%.
These gains are not unique to Nio, however. Wedbush Securities analyst Dan Ives released a report last week that took a bullish stance on the entire electric vehicle industry, affirming that we will likely see global expenditure on electric vehicles over the next decade reach $ 5,000 billion. While the companies he focused on were Lucid and Rivian, this type of prediction sheds a positive light on the entire EV industry. I also have boasted the potential of the EV built by Apple (NASDAQ:AAPL), claiming that we could see it as early as 2024.
The way to go
What else is behind this surge in NIO stock prices? FXStreet reported that there are several other factors at play. For a start, anticipation is built around the NIO ET7, the company’s latest EV. Pre-orders are expected to increase as the company prepares to launch deliveries in the first quarter of 2022. As we saw when Lucid started shipping vehicles to enthusiastic consumers in late October, EV deployments can often cause the stock price to rise. Pre-orders are already available through the Nio app, and reports indicate that this addition to the company’s collection will include some exciting new features.
Nio is also not the only company in its field to announce good news. Another Chinese producer of electric vehicles Xpeng (NYSE:XPEV) has just unveiled its latest model, the G9 SUV, which will be available in 2022. This model will likely be the main competitor of Nio’s ES8. XPEV benefited from a slightly better trade, with overall gains of 13% for the month. Its shares only rose 3.6% on the day, placing it safely behind NIO stock so far.
Xpeng may have bigger things in store, however. Recent reports said the company plans to focus on its global expansion over the coming year.
What this means
The fact that Nio rose more than Xpeng today on speculation alone seems to indicate sympathy with Xpeng. Both companies, however, have great growth potential by 2022, as Investor place recently noted contributor Bret Kenwell.
The race for electric vehicles is hot and will only intensify as 2022 takes shape. XPEV and NIO stocks still trade below their more established US peers, but that doesn’t mean they’re not worth watching. On the contrary, they should be on everyone’s list considering a bullish game on EVs in 2022.
At the date of publication, Samuel O’Brient had (directly or indirectly) no position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.