Revisiting Nio's Dream Run This Week

Nio Inc – ADR NIO, one of the best performers year-to-date period, had a strong run in its share price this week.

The Chinese electric vehicle manufacturer is on the cusp of capitalizing on a slew of initiatives it has undertaken to push vehicle sales higher and bring about cost discipline.

Nio In The Fast Lane: Nio, which ended last Friday at $21.47, rose 1.8% Monday to end the session at $21.85.

After pulling back about 1% Tuesday and settling at $21.62, the stock jumped 22.6% Wednesday thanks to upbeat commentary by JP Morgan analyst Nick Lai.

Lai predicated much of his optimism on the accelerating EV market in China, which is benefiting Nio in a "rising tide lifts all boats" scenario. 

The analyst also hiked the price target for Nio shares by 185% to $40.

The upward momentum was sustained Thursday, helping the EV maker's stock touch an intraday high of $29.23.

The stock ended Thursday's session up about 6% at a new closing high of $28.07.

What is remarkable is the increased volume that has accompanied the gains seen Wednesday and Thursday, showing conviction in the upward move.

As opposed to the average three-month volume of 110.53 million, close to 400 million shares exchanged hands in these sessions.

The stock gained a cumulative 30.7% for the week through Thursday. 

Related Link: Why Nio Has A Shot At Becoming The 'Tesla Of China'

Upcoming Nio Catalysts: The immediate catalyst that could decide the stock's trajectory is the October deliveries number due in early November.

With deliveries of its third mass market model, the EC6, ramping, another record monthly number could be in the offing.

The company began delivery of the five-seater premium electric coupe SUV on Sept. 25.

Further ahead, Nio is due to release its third-quarter results around mid-November. Analysts, on average, estimate the loss per share for the quarter will narrow from $2.38 to 18 cents. Revenues are expected to climb 145.30% to $643.81 million.

The company is also expected to unveil its next vehicle model — speculated to be a new high-performance, premium, all-electric sedan named the ET7 — at its fourth Nio Day, scheduled for Jan. 9.

NIO Price Action: Nio shares gained another 1.42% Friday, ending the trading session at $28.48.

Related Link: Nio's 4th Annual 'Nio Day' Coming In January: What Investors Need To Know

Photo courtesy of Nio.