To The Moon

$NIO Inc.(NIO)$ is scheduled to announce Q2 earnings results on 29 August 2023 (Tuesday) before market open.

NIO has added 395 new battery swap stations in China so far this year, and it aims to add a total of 1,000 this year. The massive rally in NIO Inc. stock is fueled by quarterly earnings. In previous earnings, the company succeeded in beating the EPS estimate which positively impacted the NIO share prices.

If we look at the technical analysis, NIO is currently in a correction phase and the momentum is not there. From the deliveries and partnerships they have signed so far.

NIO might face some challenges maintaining its share price. I believe the quarterly earnings will be a decisive factor whether it can stop the correction that NIO is going through.

NIO delivered 10,707 vehicles in June 2023. The deliveries consisted of 6,383 premium smart electric SUVs, and 4,324 premium smart electric sedans. NIO delivered 23,520 vehicles in the second quarter of 2023. Cumulative deliveries of NIO vehicles reached 344,117 as of June 30, 2023.

In this article I will be looking at NIO fundamental data and use technical analysis to see how NIO share price have been trading in recent days prior to its earnings report release.

NIO Inc. (NIO) Earnings Data

NIO will be able to beat its EPS estimate as we have seen cumulative deliveries of NIO vehicles reached 344,117 as of June 30, 2023.

With these numbers I believe their revenues should be higher than previous quarter.

NIO Inc. (NIO) Earnings History

I am expecting NIO to come in with a EPS of -0.35 to -0.39, with a stronger revenue and outlook for the rest of the year.

This is because they have a few positive news. Namely, NIO signs partnership deal with Singapore hospitality operator Ascott and NIO opens its largest NIO House to date in Hefei NeoPark.

NIO Inc. (NIO) Year-To-Date Earnings

NIO have given more than 10% of return YTD and the recent correction could be due to some of China slowness as their main market is still in China.

I believe with the expansion plan they have for other regions, the next 2 quarters we should see NIO giving more increase in the share price.

NIO Inc. (NIO) Hedge Funds

Confidence in hedge funds has also increased as they are loading more shares in the last quarter. The correction in the recent share price might be a good opportunities for hedge funds to load more.

There are many projects that would be coming up for NIO, as their expansions into Southeast Asia should be coming soon.

NIO Inc. (NIO) Sentiment Analysis

Investors are neutral in their sentiment, this is understandable as the recent price drop and correction might have investors wondering about NIO future plan and how they are going to gain some competitive edge in the tight EV space.

The EV space have new comer, VinFast in last week and there will be more incumbents coming. I am looking forward to see what NIO has planned for their expansions into other regions.

Technical Analysis – Simple Moving Averages (SMA)

As we can see that bull trend is picking up, and hope that a good earnings result would halt the correction and start moving NIO into a bull run.

Their last rally have ended but not for a long period of bear. I still believe NIO will make a comeback with a strong earnings.

Technical Analysis – Relative Strength Index (RSI)

From the RSI, I can see that the momentum is moving oversold region.

This is suggesting we might see potential buying activities coming up. Investors might take opportunities to load up NIO prior to its earnings.

Technical Analysis – Average Directional Index (ADX)

ADX is between 20 and 40 indicating a developing trend. Because of the recent price correction, +DI is below -DI which suggest a weak bearish downside.

I believe a strong earnings would be able to help NIO back on a bullish upside developing trend.

Technical Analysis – Parabolic SAR (SAR)

After NIO has a bearish reversal in mid August, it has experiencing correction. Price have been trading in a bearish downside.

A strong earnings should trigger a potential bullish reversal to help NIO.

Summary

Based on what I have observed, with strong deliveries numbers, I believe the revenues figure should be strong. I am looking out for the outlook that NIO has.

This is because they do have some projects and partnerships planned, but the execution is the one which will determine if their future quarters and 2023 will end in a positive notes or maybe even profitability.

I would be looking to load NIO at their target price: $10.50 to $10.60.

Appreciate if you could share your thoughts in the comment section whether you think NIO could come up with a strong earnings and a better outlook or guidance?

@TigerStars @Daily_Discussion @TigerWire  appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.