Reasons Behind the Surge in Nio Stock Today

Welcome to Extreme Investor Network, where we provide unique insights and valuable information on all things finance. Today, we are diving into the latest news surrounding Chinese electric-vehicle (EV) maker, Nio (NYSE: NIO).

Nio’s deliveries rose more than 20% year over year in the first four months of 2024, which is exciting news for investors. As a result, Nio’s American depositary shares were up about 6.7% from Friday’s closing price.

The resurgence of “meme stocks” like GameStop has sparked interest in Nio once again. Nio experienced a run-up in recent weeks, up more than 50% from its mid-April low. This surge can be attributed to stronger-than-expected deliveries and a new incentive program announced by the Chinese government, offering subsidies to buyers of electric and hybrid vehicles.

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Furthermore, Nio is set to launch its lower-cost brand, Onvo, on May 15. The first model, the L60, will be a family-centric crossover aimed at competing with Tesla’s Model Y. With a starting price of around $34,600, the Onvo brand could open up new market opportunities for Nio.

Investors are eagerly anticipating Nio’s first-quarter earnings report, expected to be released in late May or early June. However, before diving into Nio stock, it’s essential to consider other investment opportunities. The Motley Fool Stock Advisor team has identified the 10 best stocks for investors to buy now, and Nio wasn’t one of them.

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