Nio (NIO, Financials) shares soared 17% to $5.22 on Tuesday, closing at 4:09 p.m. GMT-4, as investors responded to strong vehicle deliveries and improving margins ahead of the company's upcoming earnings report. In after-hours trading, shares edged up an additional 0.38% to $5.24.
Before the market opens on March 21, 2025, the Shanghai-based electric car producer is scheduled to announce its fourth-quarter and full-year 2024 earnings report. As the business strives for profitability, investors are keeping constant observation of its performance.
Driving a 39% year-over-year rise in total 2024 deliveries, Nio announced record-breaking deliveries in December, reaching 31,000 cars. Early 2025 numbers show ongoing progress, with the first two months' deliveries over 50% year over year.
Supported by increased sales volume, the company's vehicle margins went from 9.2% in the first quarter of 2024 to 13.1% in the third quarter. A major clue of Nio's road to profitability, analysts will be looking for further margin growth in the next earnings report.
While its second brand, Firefly, targets urban lifestyle shoppers and has started taking preorders with a starting price of $20,500, Nio has also entered the mass-market sector, releasing its Onvo brand.
Separately, Nio revealed an enlarged cooperation with BASF Coatings, a division of German chemical behemoth BASF, to organize yearly strategic meetings on exterior coatings. The cooperation might save costs, increase product offers, and boost efficiency.
The strong stock price surge highlights investor hope about the forthcoming results release and the initiatives for corporate growth.
