China's EV maker Nio gains 20% in three trading days post sales surge in October

Chinese electric carmaker Nio Inc. soared on Monday after the company said it delivered more than 5,000 vehicles in October, doubling its sales over the prior-year period.

American depositary receipts for the company gained as much as 14% to $34.94 in New York, setting a record. The company had similarly announced last Thursday that it had produced 5,000 vehicles for the month and the ADRs closed up 16% that day.

Nio said it delivered 5,055 vehicles in October, consisting of 2,695 ES6s, its 5-seater SUV; 1,477 ES8s, the 6- and 7-seater SUV; and 883 EC6s, the coupe SUV.

The latest surge in the stock brings Nio’s market valuation to over $44 billion, compared to bigger and more traditional automakers Ford Motor Co.’s $31 billion and General Motors Co.’s $50 billion. The leading electric-vehicle company Tesla Inc. currently commands a market capitalization of $376 billion.

Nio, along with Chinese peers BYD Co. and XPeng Inc., is poised to benefit from strong growth in the adoption of electric vehicles in China, helped by the country’s focus on incentivizing electric-car developers. Beijing wants new-energy vehicles to account for 15% or more of the market in 2025.