Chinese electric vehicle startup Nio Inc – ADR NIO has mounted an 800%-plus stock rally year-to-date, and its market capitalization now sits among the most storied names in the automotive industry.
Nio Pushes Ahead: The gains have catapulted Nio's market capitalization above that of several traditional automakers such as Bayerische Motoren Werke ADR BMWYY, Honda Motor Co Ltd HMC and Ford Motor Company F.
Wednesday's 6% rally in Nio shares propelled the EV maker's market capitalization above the valuation of Detroit automotive giant General Motors Company GM.
At Wednesday's closing price of $37.71, Nio was valued at $51.29 billion compared to GM's $50.39 billion.
The valuation of the two stood at $48.28 billion and $50.55 billion, respectively, on Tuesday.
Nio now stands seventh in terms of market cap, with only Tesla Inc TSLA, Toyota Motor Corp TM, Volkswagen A G VWAGY, Audi AG AUDVF, Chinese peer BYD Company ADR BYDDY and Daimler AG DDAIF ahead.
Does Nio Have More Upside Ahead? Nio's fundamental improvement, underlined by its cost discipline, innovation and services focus — along with massive potential offered by the Chinese market — suggests the rally has further legs.
Nio's deliveries have been breaking records in recent months, thanks to new model introductions, a battery-as-a-service program, battery technology enhancements and favorable governmental policies.
The company has set its sights on overseas expansion to capitalize on the green energy focus of many European nations.
At the annual Nio Day scheduled for January, Nio's announcements are expected to unveil a new vehicle model, speculated to be a new high-performance, premium, all-electric sedan: the ET7.
On Wednesday, a Citigroup analyst hiked the price target for Nio shares to a Street-high $46.60.
NIO Price Action: At last check Thursday, Nio shares were advancing 8.72% to $41 and GM was up 4.69% at $36.86.
Related Link: Why Nio Has A Shot At Becoming The 'Tesla Of China'
Photo courtesy of Nio.
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