Nio Stock Is Up 50% In The Past Month: What's Going On?

Shares of NIO Inc – ADR (NYSE:NIO) are trading higher Wednesday, extending recent gains fueled by investor optimism surrounding the company's new mass-market brand, Onvo. The positive momentum has propelled the stock up 50% in the last month. Here’s what investors need to know.

What To Know: The stock’s primary catalyst is the impending launch of the Onvo L90, a large family SUV priced aggressively from approximately $39,000 (RMB 279,900). The vehicle is positioned to directly challenge competitors like Li Auto Inc in the lucrative family segment.

With customer deliveries scheduled to commence on August 1, Wall Street might be betting the new model can significantly boost sales volumes and market share.

This sentiment was bolstered by a Morgan Stanley update earlier in July, where analyst Tim Hsiao reaffirmed a Buy rating and a $5.90 price target, citing the L90 rollout as a key strength.

Strategically, the L90 leverages Nio’s 900V platform and its extensive network of over 3,400 battery-swapping stations. This existing infrastructure provides a crucial advantage in alleviating range anxiety, a major hurdle for large electric SUVs.

The launch signals strong execution for the automaker, which is also preparing its third-generation ES8 SUV for late 2025, further strengthening its future product pipeline.

Benzinga Edge Rankings: According to Benzinga Edge stock rankings, which score companies on four critical factors, NIO shows underlying weakness in key areas. The company receives a very low Growth score of 13.40, indicating weak past and projected future growth in metrics like revenue and earnings.

Its Value score is also low at 32.59, suggesting that the stock may be considered overvalued relative to its financial fundamentals. Overall, these metrics present a more cautious quantitative picture, contrasting with the stock’s recent positive price momentum.

Price Action: According to data from Benzinga Pro, NIO shares are trading higher by 3.1% to $5.16 Wednesday morning. The stock has a 52-week high of $7.71 and a 52-week low of $3.02.

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How To Buy NIO Stock

By now you're likely curious about how to participate in the market for NIO – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of NIO, which is trading at $5.01 as of publishing time, $100 would buy you 19.96 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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