The Nio stock price rebounded in Hong Kong and in the premarket after the company published strong delivery numbers. It jumped to a high of $6.50, up by 120% from its lowest level in April this year, making it one of the best-performing companies in the EV space.

Nio deliveries are soaring 

Nio stock price jumped on Tuesday, helped by its strong vehicle delivery numbers as customers continued to buy its newly launched vehicles.

In a report, the company said that it delivered 31,305 vehicles in August, a record high that was a 55.2% increase from the same period last year. This surge brought its cumulative deliveries so far this year at 166,472, up by 30% from the same period last year.

Nio’s business has done well because of the recent product launches that have been received well by its customers. Its premium Nio brand sold 10,525 vehicles, while Onvo sold 16,434 vehicles, and Firefly had 4,346.

These numbers mean that customers are embracing its new vehicles, a trend that will continue in the coming months.

Most importantly, the deliveries came a few days after its top competitor like Byd published weak financial results, in which it blamed the rising competition and pricing factors for the weakness.

Nio is also doing well as the Chinese EV market becomes highly saturated. Some of the top companies in the country like Li Auto, XPeng, SAIC, and Cherry are all selling thousands of vehicles a month, with most of them relying on discounting.

Read more: Nio stock surges 11% as Morgan Stanley reaffirms bullish view after ES8 launch

Nio earnings ahead 

The next important catalyst for the Nio stock price is the upcoming earnings, which will come out shortly before the US market opens.

Its business delivered 72,056 vehicles in the quarter, up by 25.6% from the same period last year.

Therefore, using these numbers, analysts expect the upcoming results to show that its revenue rose by 13% YoY to CNY 19.74 billion, a higher growth rate than other companies like Tesla and Byd. 

Analysts also expect the upcoming results to show that its losses narrowed slightly during the quality. In this, the loss-per-share is seen coming in at CNY 2.0, down from CNY 2.21.

Nio’s guidance is that its revenue for the current quarter will be CNY 89.7 billion, up by 36.50% from the same period last year. This will lead to an annual revenue of CNY 89.72 billion last year, and will then be followed by CNY 116.25 billion next year.

Nio stock price technical analysis 

Nio stock chart | Source: TradingView

The daily chart shows that the Nio share price has been in a strong bullish trend in the past few months, moving from a low of $3 to $6.50 today, in line with we had predicted here and here.

The stock has moved above the upper side of the inverse head-and-shoulders pattern at $5.48. This is one of the most popular bullish reversal signs in technical analysis.

It has also formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) have crossed each other.

Also, the Relative Strength Index (RSI) and the MACD indicators have continued rising, a sign that it is gaining momentum.

Therefore, the stock will likely continue rising as bulls target the next key resistance level at $7.67, up by 17% from the current level. A drop below the support at $6 will invalidate the bullish outlook.

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