Chinese electric vehicle (EV) maker Nio (NIO) is set to announce its third-quarter results before the market opens on Tuesday, November 25, and the options market is expecting a volatile reaction. Based on options pricing, traders are expecting a 9.86% move in either direction, following the results. This is much higher than Nio’s average post-earnings move (in absolute terms) of 2.08% over the past four quarters.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
The recent 10.48% move suggests traders are preparing for sharp swings ahead of the report. Investors will be looking for updates on Nio’s newest models, progress on cost-cutting plans, and any signs that margins are starting to stabilize. Investors will also watch Delivery trends will also be closely watched amid robust competition in the Chinese EV space.
What Is Wall Street Expecting from NIO’ Q3 Earnings?
Analysts expect the company to report revenues of $3.12 billion in Q3, up 20% year-over-year. On the earnings side, Nio is expected to report a loss per share of $0.22 for Q3 versus a loss of $0.30 in the same quarter a year ago.
Notably, the company has surpassed earnings estimates only twice out of the previous nine quarters.
Some market watchers remain upbeat ahead of the report. One highly ranked TipRanks investor, known by the pseudonym Juxtaposed Ideas, believes Nio could still grow even with tough competition in China and the end of EV subsidies.
The investor points to Nio’s plan to lift monthly production to around 56,000 vehicles, which could lead to as many as 672,000 cars a year by 2026 if the company hits those targets. That would be a big jump from the current pace of about 241,000 vehicles year-to-date, showing the company still has room to scale if demand holds up.
Is NIO Stock a Good Buy Right Now?
Analysts remain divided about Nio’s long-term outlook. On TipRanks, NIO stock has a Moderate Buy consensus rating based on six Buys, six Holds, and one Sell rating. The average Nio price target of $6.90 implies 23.66% upside potential from current levels.
