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 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.
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.
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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