NIO reports its income today. Expect a mad race for the stock.

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Investors can expect fireworks when Chinese electric vehicle maker

NIO

reports second quarter figures after markets close on Wednesday. NIO is expected to report strong sales and forecasts, but that might not be enough to keep the stock going.

Over the last eight published quarters, NIO stock (ticker: NIO) has traded an average of 15.6%, up or down, depending on earnings. The title fell the day after six of those eight quarters.

And half of those six declines followed net earnings that exceeded analysts’ expectations. In addition, NIO recorded better-than-expected sales in all six quarters.

However, volatility expectations are down a bit for this quarter. Options markets imply a 7% to 10% move as a result of this earnings report.

Wall Street is looking for a loss of 8 cents per share on sales of $ 1.28 billion. In the first quarter, NIO lost 4 cents a share on revenue of $ 1.23 billion.

Quarterly estimates seem achievable. NIO delivered around 22,700 vehicles in the second quarter, about 14% more than the 19,937 vehicles delivered in the first quarter of 2021.

In the future, investors will want to know about plans to increase capacity. NIO produces cars at a rate of about 8,000 per month. Investors will also want to hear about Chinese demand for electric vehicles, which has been very strong so far in 2021.

A third topic of concern to investors is the global shortage of automotive semiconductors that has limited automotive production. The shortage persists, but improves a bit in the second half of 2021. Investors will want to hear NIO’s management echo this sentiment.

NIO management is holding a conference call at 9 p.m. EST tonight to discuss the results.

NIO stock has seen a wild ride in 2021. Stocks are down around 9% year-to-date, behind comparable 18% and 15%, the respective gains of

S&P 500

and

Dow Jones Industrial Average.

NIO shares are down 34% from their 52-week January high of nearly $ 67 per share and are up 27% in the past three months.

The Chinese government’s crackdown on Chinese companies listed in the United States, rising interest rates – which has hurt high-growth, high-value-added companies more than others – and the chip shortage are responsible for much of the volatility.

Nio shares plunged 0.1% at 3:49 p.m. Wednesday.

Write to Al Root at [email protected]