Nio, Inc.’s (NYSE: NIO) vehicle deliveries increased 60.3% year-over-year to 12,961 units in June. The figure includes 4,349 ET7s, 1,828 EC6s, 5,100 ES6s and 1,684 ES8s.
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In the second quarter of 2022, the EV maker delivered 25,059 vehicles, up 14.4% year-over-year. The figure surpassed the guidance range of 23,000 to 25,000 vehicles. The company’s cumulative deliveries reached 217,897 vehicles as of June 30.
Nio unveiled ES7 e-SUV in mid-June and plans to commence its deliveries next month. ES7 e-SUV is the company’s first vehicle based on NIO Technology 2.0 (NT2.0).
Along with ES7, Nio plans to begin deliveries of the 2022 version of ES8, EC6 and ES6 in August. These new models feature an upgraded version of the digital cockpit domain controller and sensing suite.
About Nio
China-based Nio designs, produces and sells premium smart EVs. Apart from China, its vehicles are available in Hong Kong, Germany, the UK, and the U.S. The company also offers EV charging solutions and value-added services.
Wall Street’s Take
Last week, Nomura analyst Martin Heung maintained a Buy rating on the stock but lowered the price target to $25.80 from $51.50 (20.8% upside potential).
In a research note to investors, the analyst said, “Concerns over the company’s ES7 SUV model’s revenue contribution may persist. Meanwhile, its mass-market brand is highly-priced, limiting the size of the client base it can reach.”
Overall, the stock has a Strong Buy consensus rating based on 10 unanimous Buys. NIO’s average price target of $33.66 implies 57.6% upside potential.
Hedge Funds’ Activity on TipRanks
TipRanks’ Hedge Fund Trading Activity tool shows that the confidence in Nio is currently Very Positive, as the cumulative change in holdings across all seven hedge funds that were active in the last quarter was an increase of 3.5 million shares.
Conclusion
NIO stock has lost 57.5% over the past year and 36.2% year-to-date. The stock is likely to gain in the second half of 2022 on the back of increased demand for EVs. The company is also working towards expanding its global presence, which could help boost its long-term growth.
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