Nio Shares Skyrocket 11% After Tesla Deliveries Beat
Analysts said Tesla's second-quarter fueled investors' interest in its Chinese counterpart.
Shares in Chinese electric vehicle maker Nio Inc. (NYSE: NIO) jumped 11 percent to close at $3.13 apiece Wednesday after Tesla Inc. (Nasdaq: TSLA) reported deliveries that exceeded expectations.
"It's not the first time that Nio has rocketed up or down off news related to Tesla," Clark Schultz, Seeking Alpha analyst, said.
Tesla delivered a record 95,200 vehicles in its second quarter driven by increased Model 3 deliveries, sending its stock up 5 percent to $234.90 per share Wednesday. The growth rate of Model 3 production reached year-over-year 134 percent and 51 percent sequentially.
"Given Tesla's indication of surprisingly strong demand for the EV market, and even though much of that demand came from U.S. consumers, it was hardly surprising to see NIO bounce in response today," Steve Symington, an analyst at The Motley Fool, said.
Last month, Nio announced it began deliveries of its ES6 electric smaller crossover to the first customers in Beijing, Shanghai, and Guangzhou.
Nio made headlines when one of its electric ES8 SUV's caught fire in Wuhan, China, on June 14. It was the third incident of a Nio ES8 catching fire or emitting smoke. The company said it was investigating the incidents and declined to provide further details.
With a market capitalization of nearly $6 billion, Nio, backed by Chinese tech heavyweight Tencent Holdings Ltd. (HKEX: 0700), was the third-biggest U.S. listing by a Chinese firm last year.