The Chinese manufacturer said it will increase production capacity to support even more deliveries in the third quarter
The shares of Nio Inc (NYSE: NIO) are up 12.3% at $13.41 this morning, one of the top stocks on the New York Stock Exchange today. The breakout comes after the electric car company announced it delivered 3,533 vehicles in July 2020, a 322.1% year-over-year increase. The Chinese manufacturer and Tesla rival also said it will be able to increase production capacity to support even more deliveries in the third quarter. The good news comes a week ahead of Nio's second-quarter earnings report, which is due out Tuesday, August 11.
On the charts, the security has been on a rapid climb since May, tripling in value the last three months and hitting an all-time-high of $16.44 on July 13. While the equity has cooled off since then, its 30-day moving average is in place for support.
Despite the massive surge, analysts are hesitant toward the equity, with five of the six in coverage carrying a tepid "hold" rating. Meanwhile, the 12-month consensus price target of $6.55 is a 50.8% discount to current levels, meaning price target hikes could be on NIO's horizon. There's similar skepticism among short sellers; the 127.12 million shares sold makes up 16.5% of the security's available float.
Nonetheless, a look at Nio's options pits shows calls more than doubling puts. In fact, 1,179,193 calls were exchanged in the past 50 days, as opposed to just 400,952 puts. Also worth noting is the security's Schaeffer's Volatility Scorecard (SVS), which sits relatively high at 74 out of 100. In simpler terms, Nio stock has tended to exceed option traders' volatility expectations during the past year, a good thing for option buyers.