NioChina is the world’s largest electric vehicle market, with sales outpacing the U.S. by almost three to one. Although Tesla has recently entered the Chinese market with its own production facility, there are already domestic manufacturers that are popular with consumers. Nio Inc. (NYSE: NIO) is one of them, and it has just reported a positive fiscal quarter that has sent stock upwards.

Although Nio is still operating at a loss, its revenue growth is promising. In its most recent quarter, the company generated earnings per share of -$0.34, slightly beating the analyst estimate of -$0.36. This was possible thanks to a 25% year over year increase in revenue, taking the company to $257 million for the third quarter.

The company delivered 4,799 electric vehicles in Q3, a 35.1% increase over the previous quarter.

Stock had its second-best single-day gain when earnings were released yesterday. As an alternative pick, Nio is promising. While it is unlikely to compete with Tesla on a global scale, its presence in the Chinese market is well established and puts it in a strong position to continue increasing its delivery numbers.

This stock is closely aligned with lithium and renewable energy picks, and its bargain pricing makes it a compelling option for the new year.

Key Data:

  • 1 Year Price Growth: -41.60%
  • YTD Price Growth: -41.60%
  • 3 Month Price Growth: 46%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.