Shares of Nio Inc. (NYSE: NIO) surged by a whopping 17% on Tuesday, closing at $5.22. The rally comes as investors gear up for the company’s highly anticipated fourth-quarter and full-year 2024 earnings report, scheduled for release on March 21, 2025.
What’s Driving Nio’s Stock Surge?
Several factors are behind this impressive stock jump.
First, there’s growing optimism around Chinese equities. Citigroup recently upgraded its stance on Chinese stocks, boosting confidence in companies like Nio. With government support for tech and AI-driven advancements, investors are looking at Chinese firms more favorably, and Nio is reaping the benefits.
Second, Nio’s vehicle deliveries have been on a hot streak. The company reported a 39% increase in deliveries for 2024, setting a record with 31,000 units sold in December. The momentum hasn’t slowed down in 2025, with a nearly 50% year-over-year rise in sales for the first two months.
Another key factor is Nio’s expanding product lineup. The company has already launched its mass-market Onvo brand, while its affordable Firefly EV, priced at around $20,500, is now available for pre-orders. These moves signal a push to attract a wider range of buyers, which could lead to even stronger sales in the coming months.
Nio has also made strides in improving its financial performance. The company’s vehicle margins have climbed from 9.2% in early 2024 to 13.1% by the third quarter. This growth is a positive sign, as it shows Nio is becoming more efficient and profitable.
What’s Next for Nio?
With the earnings report just days away, all eyes are on the numbers. Investors want to see if the company can sustain its strong sales performance and whether profit margins will continue to improve.
The options market suggests that traders are cautiously optimistic, with a high number of call options being placed on Nio’s stock. However, challenges remain. The company has struggled with profitability in the past, and its expansion into the European market hasn’t been as successful as expected.
Nio’s upcoming earnings report will be a major test. If the results impress, the stock could continue its upward climb. But if there are any surprises, volatility could return. Investors remain hopeful that the EV maker is on the right track for now.
