Nio (NIO) is advancing 12% in Thursday’s pre-market trading, after the Chinese electric vehicle company reported record monthly and quarterly deliveries.
The stock soared to $8.82 in pre-market trading. The car maker said it delivered 3,740 vehicles in June, representing an increase of 179.1% from the same period last year. Deliveries in the second quarter jumped 190.8% to 10,331 vehicles year-over-year.
June deliveries consisted of 2,476 ES6s, the company’s 5-seater high-performance premium smart electric SUV, and 1,264 ES8s, its 7-seater high-performance premium smart electric SUV.
“In June, we achieved a historical high of monthly deliveries, contributing to our best quarterly performance,” said Nio founder, chairman and CEO William Bin Li. “We are proud of our team for their strong execution from production to delivery. We remain committed to offering the best premium smart electric vehicles and the best user experience to our users.”
As of June 30, cumulative deliveries of the ES8 and the ES6 models amounted to 46,082 vehicles, of which 14,169 were delivered in 2020.
Nio began deliveries of the ES8 electric SUV in China in June 2018, and its variant, the 6-seater ES8, in March 2019. The carmaker officially launched the ES6 model in December 2018 and started first deliveries in June 2019. The company officially launched the EC6, a 5-seater smart premium electric coupe SUV, in December 2019 and plans to start deliveries this year.
Shares in Nio have almost doubled so far this year and, as a result, analysts have a cautious Hold consensus on the stock’s rating outlook with 3 Holds and 1 Sell versus 1 Buy. That’s with a $5.70 average analyst price target (28% downside potential).
Merrill Lynch analyst Ming-Hsun Lee believes the bullish order momentum is not over yet, and recently reiterated a Buy on the stock rating while ramping up the price target to $7.30 from $5.50. (See Nio stock analysis on TipRanks).
Lee believes that Nio is enjoying stronger orders and should benefit from China’s favorable EV purchase subsidy scheme.
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