Nio Stock Surges After Strong Q2 Results

$NIO-SW (09866.HK)$ shares jumped 10% on Monday, following a 13% rise in Hong Kong after a strong Q2 earnings report. The electric vehicle maker reported a narrower-than-expected net loss of 5.13 billion yuan ($723.7 million) and almost doubled its revenue.

Nio also set an optimistic forecast, projecting 61,000 to 63,000 vehicle deliveries for Q3, building on a record 57,373 units delivered in Q2. This upbeat outlook led JPMorgan to upgrade Nio to "Overweight" with an increased price target of $8, citing improved cash flow.

Despite its Q2 success, Nio shares are still down over 33% for the year, affected by slowing demand, heavy competition, and economic challenges in China.