Shares of China-based EV maker NIO Inc. (NIO) increased 3.6% to close at $40.84 on Monday after the company announced delivery results of its smart EVs for October 2021.
NIO revealed that it delivered 3,667 vehicles in October, representing a year-over-year decrease of 27.5%. The decrease reflects lower production volume due to the restructuring and upgradation of manufacturing lines, along with the groundwork for new products introduction from September 28 to October 15. Global supply chain volatility also acted as a headwind.
Despite these challenges, the company’s new order recorded an all-time high in October on the back of rising demand.
The total number of deliveries included 218 NIO ES8s (six-seater or seven-seater flagship premium smart electric SUV), 2,528 NIO ES6s (five-seater high-performance premium smart electric SUV), and 921 NIO EC6s (five-seater premium smart electric coupe SUV).
Overall, as of October 31, 2021, total deliveries stood at 145,703 vehicles. (See NIO stock charts on TipRanks)
Looking at NIO’s peers, while XPeng (XPEV) delivered 10,138 vehicles in October and registered a year-over-year increase of 233%, Li Auto’s (LI) October deliveries came in at 7,649 Li ONEs, up 107.2%.
NIO will report its third-quarter 2021 results on November 9 after the markets close.
Wall Street’s Take
On October 28, Bernstein analyst Eunice Lee initiated coverage of NIO with a Hold rating and a price target of $45 (10.19% upside potential). Lee said that EVs were the future of the Chinese autos landscape.
Although the analyst considers NIO’s offerings and battery swapping technology as “very attractive”, competition in the space concerns him.
Consensus among analysts is a Strong Buy based on 8 Buys and 1 Hold. The average NIO price target of $58.57 implies 43.41% upside potential from current levels. Shares have gained 22.57% over the past year.
According to the tool, the NIO website recorded a whopping 169.28% monthly growth, year-over-year, in global visits in September. Also, Q3 depicted quarter-to-date growth in 2021 of 67.13%, compared to quarter-to-date growth a year ago.
Notably, year-to-date website growth, compared to year-to-date website growth in the previous year, came in at 206.23%.