Nio stock price soared by over 6% on Tuesday as the company continued its international expansion. It jumped to $6, its highest point since March 16, and was up by over 36% from its lowest point this year. This surge has brought the market capitalization to nearly $15 billion.
Nio Stock Jumps as Growth Momentum Continues
The Nio share price has done well this year, a trend that continued after it reported strong financial results and its first profitability. Its results showed that its deliveries rose to 124,807 in the fourth quarter from 72,690 in the same period a year earlier.
Nio’s growth was driven by its core brand and other vehicle brands, such as ONVO and FireFly. In its recent monthly update, the company sold 20,797 vehicles, up by 57.6% YoY. It has now delivered over 1.045 million vehicles since its inception.
The company expanded its vehicle margins despite the ongoing competition in the Chinese market. Its vehicle margin rose to 18.1% from 13.1% in the fourth quarter of the previous year. Its total revenue jumped by 75% to over $4.96 billion. In contrast, Tesla’s vehicle sales dropped in the fourth quarter, driven by weakness in Europe, North America, and China.
READ MORE: MSTR Stock Price Forecast: Here’s Why Strategy May Crash Below $100
Most importantly, the company posted a profit of $40.4 million, reversing a loss of over $110 million a year earlier. The management believes this trajectory will continue in the coming years, which may help it reduce future dilution.
A key catalyst for Nio and other EV companies is that the ongoing US-Iran war has pushed crude oil prices higher. As a result, more people are likely to switch from internal combustion engine (ICE) vehicles to EVs.
Nio is also keen on international expansion. Just this week, the company launched the first NIO House in the Americas in Costa Rica. The company aims to gain market share in South America, where Chinese companies are expanding.
Nio Share Price Forecast: Technical Analysis
The daily chart shows that the Nio share price has rebounded in the past few weeks. It has soared from a low of $4.35 in February to the current $5.95.
The stock has formed a cup-and-handle pattern, a common bullish continuation sign in technical analysis. It is now in the handle section and is approaching the 38.6% Fibonacci Retracement level. Also, it is about to form a mini golden cross pattern as the 50-day and 100-day moving averages near a crossover.
Nio has moved above the 50-day and 100-day Exponential Moving Averages. Therefore, the stock will likely continue rising, with the next key target to watch being at $6.85, the 23.6% retracement level. This target is about 15% above the current level.
READ MORE: Coinbase Stock Price Is at Risk of Crashing to $100: Here’s Why
