Nio Stock Briefly Jumps on Soaring Vehicle Deliveries

Shares of Nio (NYSE: NIO) briefly jumped on Thursday morning after the Chinese electric vehicle (EV) company reported monthly vehicle deliveries. Shipment volumes soared in the month of June as the global semiconductor shortage eased, allowing Nio to manufacture more cars to meet demand.

The stock had gained as much as 4% in early trading, but shifted into reverse and ended up down by 2% as of 12 p.m. EDT.

Here’s what EV investors need to know about Nio’s second quarter figures.

Q2 deliveries came in near the high end of guidance

Total vehicle deliveries in June soared 116% to 8,083. That brought volumes for the second quarter to 21,896, an increase of 112% from a year ago and near the high end of the company’s guidance range of 21,000 to 22,000 vehicles. 

Here’s a breakdown of the models Nio sold.

ModelDeliveries
ES81,498
ES63,755
EC62,830
Total8,083
Data source: Nio

The ES8 is Nio’s flagship premium SUV that can seat six to seven passengers, while the ES6 is a smaller SUV that emphasizes performance. The EC6 is a more compact coupe SUV.

This was the first time Nio has delivered more than 8,000 vehicles in a month, which was made possible as chip shortage challenges faded into the rearview mirror. Deliveries have been improving sequentially each month as the supply chain conditions improve.

MonthDeliveries
April7,102
May6,711
June8,083
Total21,896
Data source: Nio

“Our order momentum remains solid, while the risk of a global chip shortage still looms large in the second quarter,” CEO William Li had previously said on the earnings call in April (through a translator). 

As of the end of June, Nio’s cumulative deliveries had reached 117,597 total vehicles throughout its history.

The road ahead

While the delivery numbers were strong and underscore the underlying demand trends in China’s booming EV market, the modest drop in the stock may be attributable to the fact that shares climbed 6% yesterday after Citi boosted its price target on Nio to $72. Investors were already pricing in lofty growth expectations. Analyst Jeff Chung was predicting “robust shipment volumes” in the second quarter, and Nio delivered. The analyst was modeling for 21,200 deliveries in the second quarter.

Nio has not formally scheduled its second quarter earnings release yet, but typically reports its quarterly results in August. The company’s guidance calls for revenue in the range of 8.15 billion yuan to 8.5 billion yuan, or $1.26 billion to $1.31 billion based on current exchange rates. That would represent top line growth of 119% to 129% compared to the second quarter of 2020.

Pick Like A Pro

Where to invest $500 right now

Lots of new investors take chances on long shots instead of buying shares of great companies. I prefer businesses like Amazon, Netflix, and Apple — they’re all on my best stocks for beginners list.

There’s a company that “called” these businesses long before they hit it big. They first recommended Netflix in 2004 at $1.85 per share, Amazon in 2002 at $15.31 per share, and Apple back in the iPod Shuffle era at $4.97 per share. Take a look where they are now.

That company: The Motley Fool.

For people ready to make investing part of their strategy for financial freedom, take a look at The Motley Fool’s flagship investing service, Stock Advisor. They just announced their top 10 “best buys now” across the entire stock market. Whether you’re starting with $100, $500, or more, you should check out the full details.

Click here to learn more

Leave a Reply

Your email address will not be published. Required fields are marked *

In This Article