Chinese electric vehicle manufacturer Nio (NIO) has made remarkable progress in the competitive EV market, traditionally ruled by established names like Tesla (TSLA) and BYD (BYDDF). Recent sales figures from Nio indicate that its upward trajectory continues to gain momentum. Shares of Nio closed at $6.38 last Friday, with analysts anticipating a vigorous trading session when markets reopen after the Labor Day holiday.
Impressive Sales Milestones
Nio recently achieved a significant milestone with 10,575 deliveries in the first full month of sales for its ONVO L90 model, marking it as the company’s quickest model to surpass 10,000 units, as reported by the company.
In August, Nio announced total vehicle deliveries of 31,305, which included 10,525 from its premium electric vehicle line and 16,434 from its family-centric ONVO brand. Additionally, 4,346 FIREFLY vehicles were delivered, representing the company’s pinnacle offering currently on the market.
Record-Setting Cumulative Deliveries
By the end of August, Nio’s cumulative deliveries reached 838,036, setting a new record for the company.
As deliveries increase, attention is now directed towards Nio’s upcoming earnings report, expected to be released before the market opens. Analysts project a reduced loss of $0.31 per share for the quarter, compared to a $0.36 loss reported in June. Notably, Nio’s stock has surged by 81% since the previous earnings report.
Challenging Established Rivals
Nio’s robust sales trend is beginning to encroach on territories long held by Tesla and BYD. In the April to June quarter, Tesla delivered approximately 384,000 vehicles, while BYD sold around 380,000 in June alone. While both companies currently produce nearly ten times as many vehicles as Nio, sheer volume doesn’t always equate to investment attractiveness.
New Launches to Drive Growth
Nio is actively expanding its offerings, having introduced a range of new models including the ES6, EC6, ET5, and ET5P, with hopes of further increasing deliveries in the latter part of the year. Vehicle margins have risen to 10.2%, up from 9.2% year-over-year, and overall gross margin improved to 7.6%, compared to 4.9% a year prior.
While it remains to be seen if this broad range of vehicles can sustain Nio’s momentum, the company’s track record of meeting consumer demands suggests that these new models could enhance shareholder value instead of detracting from it due to potential negative feedback or reputational issues.
Analyst Perspectives on NIO Stock
A consensus among Wall Street analysts gives NIO stock a Moderate Buy rating, supported by four Buy recommendations, five Holds, and one Sell designation in the past three months. After a 53% rally over the past year, the average price target for NIO stands at $5.01 per share, indicating a potential downside of 21%.
Disclaimer: The views expressed in this article reflect those of the featured investor. This content is for informational purposes only. It is essential to perform individual analysis before making any investment decisions.
