Stock Market Today, Feb. 23: Nio Jumps on Record Lunar New Year Battery Swaps

Nio (NIO +4.63%), designs and sells electric vehicles, including sedans and SUVs. The stock closed Monday at $5.29, up 4.34%, after the company reported a record 1 million battery swaps in less than a week during the Lunar New Year, and investors are watching for signs of sustained demand and service revenue growth.
Trading volume reached 52 million shares, coming in nearly 15% above compared with its three-month average of 45.2 million shares. Nio IPO’d in 2018 and has fallen 20% since going public.

How the markets moved today

The S&P 500 (^GSPC 1.04%) fell 1.01% to 6,840, while the Nasdaq Composite (^IXIC 1.13%) declined 1.13% to 22,627 as growth shares lagged during Monday’s session. Among automotive industry peers, Tesla (TSLA 3.02%) closed at $399.83, down 2.91%, and Rivian Automotive (RIVN 2.03%) finished at $14.96, down 2.03%, reflecting continued pressure on high-growth EV names.

What this means for investors

Nio said it completed 1 million battery swaps in less than a week over the Chinese Lunar New Year, reinforcing its network scale and boosting investor confidence surrounding its subscription service revenue model.

Nio’s U.S.-listed shares extended gains as investors focused on the record holiday battery-swap as well as confidence that record fourth-quarter deliveries could continue to move higher. Nio also recently told investors it expects to achieve its first-ever adjusted operational profit in the fourth quarter.