Why is NIO stock up today?

NIO stock is up today for several reasons:

1. Strong Delivery Growth: NIO has reported a significant year-over-year increase in deliveries, with a 135% growth in April 2024 compared to the previous year. This substantial growth has likely contributed to investor optimism.
2. New Brand Launch: NIO is launching a new lower-cost brand, which is expected to compete with Tesla's Model 3. This move could be seen as a strategic expansion that may increase NIO's market share and revenue potential.
3. Regulatory Support: Chinese regulators have announced plans to pursue short sellers and eliminate "illegal behaviors," which has been perceived positively by the market. This could signal a shift in regulatory policy towards supporting domestic equity markets, which may benefit NIO and other Chinese stocks.
4. Analyst Upgrades: J.P. Morgan's Nick Lai has upgraded NIO's stock, citing the company's new battery-as-a-service strategy and the Chinese government's policy to stimulate auto demand. Analyst upgrades can often lead to increased investor confidence and a subsequent rise in stock price.
5. Industry Growth: The global automotive industry, including electric vehicles (EVs), is projected to grow in 2024, with EV sales expected to rise globally. This broader industry growth can contribute to positive sentiment towards companies like NIO that are active in the EV market.

These factors, when combined, likely contribute to the recent upward trend in NIO's stock price. It's important for investors to conduct thorough due diligence and consider both the potential for high returns and the risks involved before making investment decisions.