NIO stock climbs as firm announces 27% YoY delivery growth

NIO stock climbs as firm announces 27% YoY delivery growth
2 weeks ago
2 mins read

One of the pioneers in the premium smart electric vehicle (EV) market, NIO (NYSE: NIO), provided a delivery update today, on August 1. The firm delivered 10,052 vehicles in July, making it a 27% year-on-year (YoY) increase compared to the same period last year. 

Overall, compared to June 2022 quarter, the deliveries are down 22.44%, as the company stressed limited availability of casting parts, which affected the production of ET7 and EC6 models. The July deliveries consisted of 7,579 premium smart electric SUVs and 2,473 premium smart electric sedans. 

Furthermore, year-to-date (YTD) deliveries reached 60,879 vehicles, up 22% YoY, indicating a robust monthly delivery trend. Meanwhile, NIO is trading up by 2.58% to $20.24 in pre-market trading at the time of writing. 

NIO monthly delivery trend. Source: CnEVPost   

NIO chart and analysis 

Considerably lower volume is observed in the last couple of days, while NIO trades at the lower end of its 52-week range. Over the past month, the stock see-sawed between $18.59 and $23.28, with a support zone ranging from $19.04 to $19.66, and the resistance now moved due to the pre-market trading to a region between $21.16 and $21.18. 

NIO 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

TipRanks analysts have a ‘strong buy’ rating consensus, seeing the average price in the next 12 months reaching $33.66, 70.60% higher than the current trading price of $19.73.

Wall Street analysts’ price targets for NIO. Source: TipRanks  

Equally important, Nio is planning on launching a third vehicle brand, targeting the low to the mid-range segment, a segment under RMB 200,000 (~$29,616), under both the Nio brand and a sub-brand dubbed ALPS. 

It also seems that Nio’s counterparts have also had lower deliveries in July compared to June, as supply chain issues still weigh on the auto sector.

On the other hand, the YoY increase has the entire sector trading in the green in the pre-market, with both XPeng (NYSE: XPEV) and Li Auto (NASDAQ: LI) up 2.74% and 3.65%, respectively. Continuation of the strong deliveries trend should return investors’ confidence and get the stock trading higher in the short term. 

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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Dino Kurbegovic

Dino is an investor and technology enthusiast with years of experience in managing complex projects. At Finbold he covers stories on stocks, investing, micro and macroeconomic trends. Also, he’s also building a micro solar power plants in his hometown.