NIO Inc. (NIO) shares were down around 4% in pre-market trading on Wednesday after the company provided its August 2021 delivery update. It also lowered its vehicles delivery outlook for Q3 due to supply chain constraints.
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Markedly, shares of the leading China-based company in the premium smart electric vehicle market have gained around 95% over the past year. (See Nio stock charts on TipRanks)
Due to ongoing volatility and concerns related to semiconductor supply, the company reduced its expected vehicle production and deliveries for the third quarter of 2021. The company now expects to deliver 22,500 – 23,500 vehicles versus previous expectations of 23,000 – 25,000 vehicles.
On a positive note, the company said that it delivered 5,880 vehicles in August 2021, reflecting an increase of 48.3% year-over-year.
Furthermore, NIO’s new orders peaked at an all-time high in August, boosted by strong demand despite supply chain constraints due to the COVID-19 pandemic in some parts of China and Malaysia.
Cumulative deliveries of the ES8, ES6, and EC6 reached 131,408 vehicles as of August 31, 2021.
Nomura analyst Martin Heung recently reiterated a Buy rating on NIO with a price target of $71.10 (80.9% upside potential).
Heung forecasts the company to report a loss of $3.14 per share for the third quarter of 2021.
Consensus among analysts is a Strong Buy based on 7 unanimous Buys. The average NIO price target of $66.01 implies 67.9% upside potential to current levels.
TipRanks data shows that financial blogger opinions are 80% Bullish on NIO, compared to a sector average of 72%.
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