Nio’s 3Q Sales Spike 146% On EV Deliveries; Stock Up 1,059% YTD

Nio Ltd.’s 3Q revenues soared 146.4% to $666.6 million year-over-year and surpassed analysts’ expectations of $664 million, mainly driven by record deliveries of its electric vehicles. The Shanghai-based electric car maker’s 3Q adjusted loss of $0.12 per ADS (American depository shares) also narrowed from the year-ago loss of $0.33 and exceeded analysts’ projections for a loss of $0.18 per share.

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Nio (NIO) shipped 12,206 vehicles during the quarter, up 154.3% from the year-ago quarter’s tally of 4,799 units. The company’s CEO William Bin Li said, “We achieved a new record-high quarterly deliveries of 12,206 ES8s, ES6s and EC6s in total in the third quarter of 2020, followed by the best-ever monthly deliveries of 5,055 vehicles in October.”

As for 4Q, Nio anticipates revenues in the range of $921.8 million – $947.9 million, representing a year-over-year growth range of 119.7% – 126.0%. The company expects to deliver 16,500-17,000 vehicles during the fourth quarter. (See NIO stock analysis on TipRanks)

On Nov. 9, J.P. Morgan analyst Nick Lai raised the stock’s price target to $46 (1.3% downside potential) from $40 and reiterated a Buy rating. In a note to investors, Lai said that Nio would be a dominant player in the premium electric vehicle space with a market share of 30% by 2025. The analyst justified the stock’s premium valuation stating that the company is “leading the transformation of its business model in China’s smart EV (electric vehicle) market.”

Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 6 Buys and 2 Holds. Given the year-to-date share price rally of 1,059%, the average price target stands at $31.74, implying downside potential of about 31.9% to current levels.