Stock Market Today, Dec. 29: Nio Rises on CEO Forecast for Over $4 Billion in Fourth Quarter Vehicle Sales

Nio (NYSE:NIO), which designs and sells electric vehicles, including sedans and SUVs, closed Monday's session at $5.34, up 4.71% on the day. Nio IPO'd in 2018 and has fallen 19% since going public. Trading volume reached 68.1 million shares, nearly 28% above its three-month average of 53.4 million shares.

How the markets moved today

Monday’s action followed premarket focus on Nio's deeper battery reliance on Contemporary Amperex Technology (OTC:CYAT.Y) and a bullish CEO sales outlook. The S&P 500 (SNPINDEX:^GSPC) slipped 0.33% to 6,907, while the Nasdaq Composite (NASDAQINDEX:^IXIC) fell 0.50% to 23,474. Within the automotive industry, shares of sector rivals Tesla (NASDAQ:TSLA) and Li Auto (NASDAQ:LI) dropped 3.27% and 1.61%, respectively.

What this means for investors

Nio has expanded its offerings by introducing two new brands, launching the mass-market brand Onvo and a new premium compact brand, Firefly, last year.

This strategy to expand market reach has so far been successful. October marked the first time the company delivered over 40,000 vehicles in a single month. This was followed by Nio's second-largest shipment month ever in November.

Today's move came after Nio CEO William Li offered an upbeat Q4 forecast. The midpoint of Li's vehicle delivery guidance implies another new record of over 45,000 units is coming for December. Li also predicted very strong total fourth-quarter sales, indicating discounts aren't what's driving sales.

Nio stock also got a boost today from reports saying the company is relying more on CATL for batteries and has suspended supply cooperation with competitor BYD for the Onvo L60.

Howard Smith has positions in Nio and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.