Here's Why Nio Shares Jumped Wednesday
Plenty of things have gone wrong for Nio (NYSE: NIO) shareholders recently. But the stock jumped 7.2% Wednesday morning after one analyst said he believes the worst is over. Nio's American depositary shares were still higher by 6.4% as of 10:30 a.m. ET.
This year was supposed to be somewhat of a breakout year for Nio. It began sales of its first sedan models and expanded broadly into the European market for the first time. But production delays have been caused by supply chain constraints as well as COVID-19 lockdowns resulting from China's "zero-COVID" policy. Those restrictions have also impacted consumer demand in China. But Deutsche Bank analyst Edison Yu said he thinks the worst is over and 2023 will be Nio's breakout year.
The problems created by China's COVID-19 restrictions haven't been isolated to Nio. But they come at a time when investors expected the company to approach profitability. Instead, the company has reported increasing losses in the last two quarterly periods. Its net loss reached about $580 million in the third quarter. That's up from $410 million in the second quarter and $280 million in the first quarter of 2022.
Source Fool.com
