Market Overview

China's Nio Steamrolls Past GM's Market Cap, Becoming 7th Most Valuable Automaker

China's Nio Steamrolls Past GM's Market Cap, Becoming 7th Most Valuable Automaker

Chinese electric vehicle startup Nio Inc – ADR (NYSE: 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 (OTC: BMWYY), Honda Motor Co Ltd (NYSE: HMC) and Ford Motor Company (NYSE: 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 (NYSE: 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 (NASDAQ: TSLA), Toyota Motor Corp (NYSE: TM), Volkswagen A G (OTC: VWAGY), Audi AG (OTC: AUDVF), Chinese peer BYD Company ADR (OTC: BYDDY) and Daimler AG (OTC: DDAIF) ahead.

Related Link: JPMorgan Sees Nio As Attractive Long-Term Bet In Fast-Growing Chinese EV Market

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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