- Nio has overtaken General Motors in market value, as investors continue to bet on the electric carmakers’ long-term prospects.
- Nio’s more than $ 56 billion market cap on Thursday was higher than General Motor̵7;s $ 53 billion.
- Shares in Nio soared this week after the Chinese electric scooter maker said it delivered a record 5,000 vehicles in October.
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Nio is now more valuable than General Motors.
The China-based electric vehicle company had a market cap of more than $ 56 billion on Thursday, compared with General Motor’s market capitalization of $ 53 billion.
Although the two companies currently have similar valuations, the sizes of their basic businesses are far from different.
Nio distributed a total of 63,343 of its current models out of 3 electric vehicles, with the first being sold in 2018. General Motors sold 2.9 million cars and trucks in 2019 alone. .
The growing gap between basic vehicle pricing and delivery at the two companies shows how much a luxury investor is willing to pay a company that focuses solely on electric vehicles. This trend was first set off by Tesla, who saw an increase in supernatural value in 2020 as they successfully ramped up production of electric car models to nearly half a million vehicles per year. approved pandemic COVID-19.
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General Motors noted. The company recently unveiled the electric Hummer and is in ongoing discussions for a potential partnership with Nikola and its Badger pickup truck production.
Wall Street analysts are buying into Nio’s growth potential. The company received its target price increase from Citi to $ 46.40 on Thursday, demonstrating a potential 23% increase over Thursday’s close.
And last month, JPMorgan said it expected Nio “to be a permanent winner in the luxury space among Chinese brands” because Tesla’s success in China represents a “rising tide. both boats “.
Whether Nio can maintain its market value advantage over General Motors will be determined over time. In June, Nikola Motor Corp. has quickly surpassed Ford in market capitalization in less than a few days.
Shares in Nio surged 11% to hit a record high in trading on Thursday.