The first time we highlighted opportunity in Nio Inc. (NIO), it traded at $6.20. Today, it’s up to $47.15 in pre-market good for a return of 660% – and it shows no signs of slowing down with strong earnings. Its adjusted loss came in at 12 cents, as compared to expectations for 18 cents. Revenue of $666.6 million beat $663.29 million. And gross margins came in at 12.9% a compared to expectations for 11.25%. Better, with Q4 2020 guidance, the company expects to deliver between 16,500 and 17,000 vehicles.
“We’re very happy with both the delivery results as well as our financial revenue growth, but more importantly this quarter we also achieved our first ever positive gross margin for the company so I think all very exciting,“ Xpeng Vice Chairman and President Brian Gu said, as quoted by Yahoo Finance.
Believing we could be looking at another Tesla-type runner with NIO, we’re reiterating our buy on NIO this morning. Our initial target price here is $60.