NIO Stock Volatile After Mixed Q1 Earnings, Cost Cuts And Global Expansion In Focus

Shares of Chinese electric vehicle manufacturer NIO Inc – ADR NIO were trading flat Friday morning at $3.60. The stock has been volatile this week following the release of the company’s first-quarter earnings report before the bell on Tuesday.

What To Know: NIO reported first-quarter revenue of $1.37 billion, representing a decrease of 7.2% year-over-year and missing the analyst consensus estimate of $1.48 billion.

The company announced a quarterly adjusted loss of 36 cents per share, which was wider than the analyst consensus estimate for a loss of 31 cents per share.

Vehicle deliveries for the quarter totaled 30,053, a decrease of 3.2% year-over-year. The company’s vehicle margin was 9.2%, while the overall gross margin came in at 4.9%.

Looking ahead, NIO expects to deliver between 54,000 and 56,000 vehicles in the second quarter. The company issued second-quarter revenue guidance of between $2.29 billion and $2.36 billion.

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How To Buy NIO Stock

By now you're likely curious about how to participate in the market for NIO – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, NIO has a 52-week high of $7.71 and a 52-week low of $3.02.

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