Why NIO stock plunged and bounced back after hours? – Idaho Reporter

NYSE

Why NIO stock plunged and bounced back after hours?

Nio Inc reported Unaudited Q3 2020 Financial Results .Vehicle sales were RMB4,266.8 million or $628.4 million in the third quarter of 2020, representing an increase of 146.1% from the third quarter of 2019 and an increase of 22.4% from the second quarter of 2020.

We are motivated to continuously elevate the production capacity to the next level. We expect to deliver 16,500 to 17,000 vehicles in the coming fourth quarte

William Bin, NIO ceo

NIO stock is down on this news during after hours more than 5%. But why is stock price going down when results are good?

During afternoon Jim Cramer stated that NIO is just a concept, not a company. This statement was not accepted well in NIO community.

 

NIO is doing a number of things that other successful companies do, like TESLA (TSLA). Nio is adopting best practices, and now you are seeing the results. Best practices is corporate lingo for establishing a set of clear, consistent procedures that are adhered to companywide. Not limited to EVs, many companies poach their best practices from better-performing competitors. That is why people like to say how Nio is Tesla of China.

So, while I do think this is not the best week to invest in NIO, this is a long term play.

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