Why NIO Inc. (NIO) Surged on Monday

We recently published an article titled Why Traders Flocked to These 10 Stocks on Monday. In this article, we are going to take a look at where NIO Inc. (NYSE:NIO) stands against the other stocks.

The stock market kicked off the trading week on a mixed note, with two major indices ending in the green, as investors continued to digest more corporate earnings results.

Among the bellwether indices, only the Nasdaq ended in the red, dropping 0.10 percent. In contrast, the Dow Jones grew by 0.28 percent and the S&P 500 inched up by 0.06 percent.

Meanwhile, 10 companies mirrored a broader market optimism, as investors snapped up shares ahead of their first-quarter earnings performance in the next few days.

To come up with the list, we considered only the companies with a $2-billion market capitalization and $5-million trading volume.

A fleet of eco-friendly electric cars, a symbol of the company’s commitment to sustainability.

NIO Inc. (NYSE:NIO)

NIO Inc. (NYSE:NIO) saw its share prices jump by 6.95 percent on Monday to close at $4.31 apiece following Citi Group’s bullish outlook, saying that it expects the company to post record vehicle deliveries.

In its market note, Citi analyst Jeff Chung said that he expects NIO Inc. (NYSE:NIO) to deliver as many as 63,000 vehicles in the second quarter of the year, which would mark a 50-percent increase from the 42,000 cars it delivered in the first quarter.

If realized, the figure would be the company’s highest delivery figure in history.

Additionally, Chung underscored NIO Inc.’s (NYSE:NIO) ten new models to launch before the end of the year, saying that he believes the releases will come sooner than expected, especially following the Shanghai auto show, which revealed NIO’s aggressive rollout plans.

In recent news, NIO entered into an agreement with Contemporary Amperex Technology (CATL), one of the largest battery manufacturers in China, to develop a battery-swapping network across the mainland to help drivers avoid recharging slowdowns.

Nio, a China-based electric vehicle manufacturer, said the deal with CATL would benefit passenger vehicles over a wide range of products, including unifying industry technical standards, enhancing capital and business collaboration, and providing efficient recharging solutions for users.

Overall NIO ranks 4th on our list of the best performing stocks on Monday. While we acknowledge the potential of NIO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NIO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.