Nio, the Chinese-based electric car manufacturer, has suddenly seen the shares in their company rise right after they announce their third quarter delivery numbers which have gone beyond expectations.
As of 11:00 a.m. EDT, NIO's American depositary shares were up about 10% from the previous day's closing price in trading in New York.
NIO released its third-quarter sales results before the market opened and they were pretty good: NIO delivered 4,799 vehicles in the third quarter, up 35% sequentially and ahead of its own guidance for the period.
Of course, that guidance was delivered in late September, when NIO had a pretty good idea of how its quarter would end. But month by month, the trend is going in the right direction: The 2,019 vehicles that NIO delivered in September were 3.9% more than it delivered in August -- and August's deliveries had been up sharply from July's.
Despite the good news on sales, NIO still faces grim questions. The company burned more than half of its remaining cash in the second quarter as it expanded its retail presence and worked to get its ES6 SUV into full production. While CEO William Li is slashing costs and working to raise more capital, at least one analyst thinks that NIO could run out of cash within "weeks," even if an announced $200 million raise closes as scheduled.
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