Nio share jumps briefly when vehicle deliveries rise

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    Shares in Nio (NYSE: NIO) surged Thursday morning shortly after the Chinese electric vehicle (EV) company reported monthly vehicle shipments. Shipments soared in June as global semiconductor shortages subsided, allowing Nio to manufacture more cars to meet demand.

    The stock had gained up to 4% in early trading but turned into reverse and ended up losing 2% at 12 p.m. EDT.

    Here’s what EV investors need to know about Nio’s second quarter numbers.

    Deliveries in the second quarter were close to the upper end of the forecast

    Total vehicle deliveries in June rose 116% to 8,083. That brought the volume to 21,896 in the second quarter, an increase of 112% year over year and near the upper end of the company’s forecast of 21,000 to 22,000 vehicles.

    Here is a breakdown of the models sold by Nio.

    modelDeliveries
    ES81,498
    ES63,755
    EC62,830
    total8,083
    Data source: Nio

    The ES8 is Nio’s flagship premium SUV that seats six to seven passengers, while the ES6 is a smaller SUV that values ​​performance. The EC6 is a more compact coupe SUV.

    This marked the first time Nio had shipped more than 8,000 vehicles in a month, which was made possible when the challenges of chip shortage faded into the rearview mirror. Deliveries have improved sequentially every month as conditions in the supply chain have improved.

    monthDeliveries
    April7.102
    Can6.711
    June8,083
    total21,896
    Data source: Nio

    “Our order momentum remains solid, while the risk of a global chip shortage in the second quarter is still high,” CEO William Li had previously said on the conference call in April (through a translator).

    By the end of June, Nios had accumulated total deliveries of 117,597 vehicles over the course of its history.

    Along the road

    While shipments were strong, underscoring underlying demand trends in China’s booming EV market, the stock’s slight decline could be due to the stock’s 6% rise yesterday after Citi raised its target price for Nio to $ 72. Investors have already priced in high growth expectations. Analyst Jeff Chung predicted “robust shipment volumes” in the second quarter, and Nio was delivering. For the second quarter, the analyst expected 21,200 deliveries.

    Nio has not yet officially planned to release its second quarter results, but it usually publishes its quarterly results in August. The company is forecasting revenue in the range of 8.15 billion yuan to 8.5 billion yuan, or $ 1.26 billion to $ 1.31 billion at current exchange rates. This would correspond to a revenue growth of 119% to 129% compared to the second quarter of 2020.

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    Evan Niu, CFA owns shares of NIO Inc. The Motley Fool owns shares of and recommends NIO Inc. Millennial Money is part of The Motley Fool Network. Millennial Money has a disclosure policy.

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