Why Nio Stock Skyrocketed Today

On Tuesday, shares of NIO (NIO) surged higher due to the unveiling of a new vehicle. The company’s stock price ended the day with an 11% increase, even though the Nasdaq Composite index dropped by 0.4% during that same trading session.

Today saw a significant increase in Nio’s valuation following the announcement of their new three-row SUV model. This boost has pushed the stock price up approximately 15% throughout this year’s trading period.

Nio stock surges on ONVO L90 SUV announcement

Starting August 1st, Nio is introducing its latest ONVO L90 model specifically for the Chinese market. This vehicle will be available in two price options: a fully-equipped version priced at around $39,000, and a more affordable battery-as-a-service model costing approximately $27,000. The company’s earnings have grown by 21.5% compared to the same period last year, leading investors to anticipate that the release of Nio’s new SUV will increase vehicle sales and enable the firm to access lucrative service-based revenue streams.

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What’s next for Nio?

Regarding Nio stock, although it has shown a recent surge, it is still about 76% lower compared to the past three years. Notably, the company’s valuation stands at around 90% of its projected revenue for this year. Given that Tesla is trading approximately 11 times its expected sales for this year, Nio’s price-to-sales ratio could appear quite affordable at its current prices.

Initially, Nio has not transitioned into making a profit. Additionally, the stock carries some significant geopolitical risks due to the deteriorating relations between the U.S. and China. If Nio’s deliveries keep growing at their current pace, it could lead to substantial returns for investors; however, it involves a certain level of risk.

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2025-07-23 03:11