Neo (NYSE: NIO ) Stocks rose this week. China has plans to accelerate growth, and the electric vehicle (EV) maker could be a big beneficiary. But even before China’s economic stimulus has an impact, there are signs that Neo’s business is in good shape.
Investors have realized that this week, pushing Neo shares up about 24% as of Friday morning, according to the data provided. S&P Global Market Intelligence.
Green shoots for EV demand
US-listed Chinese stocks got a big boost this week as China’s central bank eased monetary policy and offered financial support to businesses and consumers. Measures to boost lending, support the real estate market and provide homeowners with more spending money should give a further boost to the strong EV market.
Chinese consumers will get a break on existing mortgages, and those savings can be spent Popular Domestic Electric Vehicle Deals. With the government promising to help the struggling property sector and increase financial support if needed, investors are scrambling to get EV names ahead of improving business results.
Neo has already announced first-time deliveries of 20,000 vehicles in the last four months. Investors are hoping that streak will be extended when the company reports September results next week.
At least one Wall Street analyst EV Follower of the leader Tesla The company expects to beat expectations when it reports its third-quarter earnings next week. In a Friday report, Wedbush analyst Don Ives said his firm expects Tesla to report 470,000 EV deliveries in the quarter. Overall expectations are 460,000 units.
A third of Tesla’s vehicle sales last year came from China. Its Shanghai factory is its largest. A slow recovery in the first half of the year also bodes well for Neo. If China recovers, Neo stock will have more room to run after its sharp spike this week.
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Howard Smith Has positions in Neo and Tesla. The Motley Fool has and recommends positions on Tesla. A motley fool Disclosure Policy.
Why Neo stock is up more than 20% this week Originally Posted by The Motley Fool
2024-09-27 21:13:54