Nio Stock Briefly Jumps on Soaring Vehicle Deliveries

Millennial Money
Millennial Money

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.






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.






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.

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