Nio (NYSE: NIO) climbed 3.1% on Tuesday to close at $6.58, rallying on the back of second-quarter earnings that demonstrated its strongest showing since Q4 2023. The EV maker posted a smaller-than-expected $567 million loss and improved its margin to 10%, suggesting a potential turnaround. Heavy trading volume of 119.6 million shares (nearly double its average) underscored heightened investor interest.
The broader markets dipped, with the S&P 500 (SNPINDEX: ^GSPC) sliding 0.7% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) falling 0.8%.
NIO peers, Li Auto (NASDAQ: LI) and BYD Company (OTC: BYDDY), also advanced on Tuesday. Li Auto rose 4.5% to $24.40, while BYD climbed 2.9% to $14.04, as both stocks benefited from continued excitement around Chinese EV demand.