Nio Finishes 2020 With a 121% Jump in December Deliveries

China’s premium electric vehicle maker Nio continued its growth streak and reported a 121% year-over-year rise in its December deliveries, which came in at 7,007 vehicles.

Nio’s (NIO) December deliveries included 2,009 ES8s SUVs, 2,493 ES6s SUVs, and 2,505 EC6s, the company’s five-seater premium electric coupe SUV for which deliveries began in September 2020. Overall, Nio’s 4Q deliveries increased 111% year-over-year to 17,353 vehicles and exceeded the company’s guidance of 16,500-17,000 units. Nio delivered 43,728 vehicles in 2020.

Nio’s CEO William Bin Li attributed the strong performance to the “growing recognition of our premium brand, the competitive and compelling products and services, the expanding sales network, and most importantly, the continuous support from our passionate and loyal user community.”

“The innovative Battery as a Service (BaaS) model has shown popularity among our users since its launch. With the 100kWh battery pack offered as an option, the penetration of BaaS has reached over 40% among new orders in December, demonstrating its competitiveness and acceptance by our users,” added  Bin Li.

The company is now gearing up to unveil its new sedan model and reveal the latest developments related to its autonomous driving and other core technologies at Nio Day on Jan. 9. (See NIO stock analysis on TipRanks)   

On Dec. 31, Merrill Lynch analyst Ming Hsun Lee reiterated a Buy rating on Nio and increased the price target to $59 from $54.70. Lee lowered his net loss estimates for the company through 2022 following the $3-billion capital raise in December 2020.

The analyst stated that he expects the company to announce a new electric sedan at Nio Day, which will hit the market by 4Q21. Lee also believes the company will unveil a 150 kilowatt-hour battery pack that will enhance the driving range. Lee thinks that Nio’s new deal with the State Grid New Energy Vehicle Corporation of China to construct 100 charging and battery swap stations in 2021 will help create value for investors.

2020 was a very rewarding year for Nio investors, with shares rising 1,112%. The average price target stands at $50.20, indicating a modest upside potential of 3%. Currently, the Street is cautiously optimistic about the stock, with a Moderate Buy analyst consensus based on 8 Buys versus 4 Holds.  

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