Market news丨NIO has a single-day increase of over 22%, why did the new forces in the US stock market rise against the trend?


On Wednesday, the three major U.S. stock indexes closed down across the board, but new car-making forces bucked the market and walked out of an upward curve. At the opening of the market on Wednesday, Weilai opened high and went high, hitting a high of $26.96 during the session, a new high since its listing. It closed up 22.57% and went up 4.3% after the market. In addition, Xiaopeng Motors (XPEV.US) rose more than 12%, and Ideal Motors (LI.US) rose nearly 7%.  

It is worth noting that entering the second half of 2020, Weilai's stock price has fluctuated and increased, and has so far increased by 565.8%, which has changed the previous decline. Affected by negative news, NIO's stock price fell to about $1 last year, almost reduced to a "penny stock", and CEO Li Bin was ridiculed as "the worst person."

 


The turning point occurred at the end of April this year. After NIO received a strategic investment of 7 billion yuan, it raised more than US$2 billion through two additional issuances. The delivery volume also provided strong support for Weilai's stock price rise. In the past seven months, Weilai's delivery volume has maintained a continuous year-on-year growth. The cumulative delivery of 26,375 vehicles in the first three quarters has exceeded the entire year of last year.

NIO, who has emerged from the "mercury retrograde" period, has recently gained support from many investment banks. Citi, JPMorgan Chase recently gave Weilai a target price substantially higher than its current stock price.


Citi analyst Jeff Chung said that Weilai’s accumulated backlog has increased by 100% from the end of September to now to 7,000 vehicles, which will greatly increase its profit margins and raise Weilai’s target price from 18.1 US dollars to 33.2 US dollars. JPMorgan Chase analyst Nick Lai gave Weilai an "overweight" rating in a research report on Wednesday, and sharply raised the target price to $40, an increase of 185.7% from the target price given in June.

Comments

Post a Comment

Popular posts from this blog

It is inevitable for technology companies to enter the market to build cars

Image
  The matter of building a car has changed. Since 2014, building a car has become the most desirable thing for entrepreneurs.  Not only are successful entrepreneurs working hard to start their second and third ventures, but countless "grassroots" teams have also begun to move around, as if the threshold of building a car was suddenly pulled to non-existent. But facts have proved that there are indeed barriers to building cars, and it limits most players.  Li Bin, the founder and chairman of Weilai  Automobile  , once said that an electric car company needs at least 20 billion yuan to reach mass production. Xiaopeng Motors Chairman He Xiaopeng also sighed: "It used to be an exaggeration to see others making cars. I jumped in and realized that 20 billion is not enough to spend.” In the end, the new car-building forces ran out of three first-tier players, but at the same time it also made people realize how difficult it is for a new company to build cars. People's attit
Read more

Tesla released a major facelift, Model S Plaid, which is as different as ever

Image
  The news of the newly redesigned 2021  Tesla  Model S was suddenly mentioned by Musk at the beginning of the year. Everyone was pleased with the Model S that had not been updated for a long time.  However, when the pictures came to light later, everyone found that the change didn't feel much, and there was almost no change in appearance. Tony teachers just repaired it and it was over.  However, after the interior was exposed, everyone found that it seemed like a new generation without looking at the exterior, which was shocking.  Many people still don't believe that this is the real car, so today Musk will give you an official announcement. Currently the fastest mass-produced electric car Today, Tesla officially released Model S Plaid, and it was also a delivery ceremony. Excited Musk specifically brushed  a  track out of the  Fremont factory  , and then drove directly to the stage. Two days ago, Musk just announced the cancellation of the Plaid+ version. The reason was that
Read more

Who is the "stumbling block" that prevents Tesla from going to the countryside?

Image
  New energy is the trend of automobiles, and the sinking market is the vast world of new energy automobiles.  However, for many new energy vehicle brands, there is still a long and rugged mountain road to go before they truly reach the "willows and flowers in another village". New energy vehicles are accelerating toward the sinking market, looking for new incremental space. However, for more new energy vehicle brands, how to break the dilemma of low prices in the sinking market, increase the added value of products, and obtain more profits in addition to the increase in sales are long-term problems that need to be faced. On the other hand, after  Baidu  , Xiaomi also intends to enter the game. Traditional car companies continue to launch new new energy brands, and more and more players are entering the game. In 2020, the power of new cars will usher in strong growth, and  Tesla  will also achieve sales of over 100,000 vehicles in the Chinese market.  Many high-end brand new
Read more