Nio Inc. is rising almost 6% in Monday’s pre-market trading, after the Chinese electric vehicle company said deliveries in July jumped 322% from the same month a year ago.
The stock is currently advancing to $12.62 in pre-market trading as the car maker said it delivered 3,533 vehicles in July, representing 322.1% growth year-over-year. The deliveries consisted of 2,610 ES6s, Nio’s (NIO) 5-seater high-performance premium smart electric SUV, and 923 ES8s, its 6-seater and 7-seater flagship premium smart electric SUV. As of July 31, cumulative deliveries of the ES8 and the ES6 amounted to 49,615 vehicles.
In the year through July 31, Nio delivered 17,702 vehicles, reflecting an increase of 111.3% year-on-year.
“In July, we are pleased to have achieved the second-highest monthly delivery results despite the impact on productions due to a 5-day suspension of manufacturing to prepare for EC6 productions and other flood-related supply chain challenges,” said Nio CEO William Bin Li. “We have achieved a record-high monthly order growth, attributed to a stronger demand of the ES8 and ES6, together with the increasing EC6 orders, thanks to the continuous support of our users.”
Looking ahead, Bin Lin expects the company to increase its production capacity significantly to achieve higher deliveries in the third quarter of 2020.
At the end of last month, Nio started production pre-orders for its EC6 5-seater premium smart electric coupe SUV. The car maker seeks to attract a younger and broader user base for the sporty and competitive EC6 model which has a100 kWh battery pack. EC6 deliveries are expected to begin in September this year.
Nio is scheduled to report its second quarter 2020 unaudited financial results before the open of US markets on Aug. 11.
Shares in Nio have exploded 197% so far this year and, as a result, analysts have a cautious Hold consensus on the stock’s outlook. That’s with a $7.26 average analyst price target (39% downside potential). (See Nio stock analysis on TipRanks).
Goldman Sachs analyst Fei Fang last month cut Nio’s rating to Sell from Hold on valuation following the rally in recent weeks. He maintained his price target at $7.
“The current share price reflects over-optimism given no substantial changes to volume/profit expectations,” Fang wrote in a note to investors.
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