Nio Shares Extend Rally As Chinese EV Manufacturer Reports Record May Deliveries

Nio Inc – ADR NIO ADSs are adding to Wednesday's strong gains in reaction to the Chinese electric vehicle manufacturer's monthly delivery report. 

Nio Delivers Record May Sales

The Shanghai-based company, which will soon move its Chinese headquarters to the Hefei City, said it delivered 3,436 vehicles in May, up 215.5% year-over-year. The deliveries comprised 2,685 ES6s and 751 ES8s.

Cumulative deliveries as of May 31, 2020 were 42,342 vehicles, with 10,429 of those delivered in 2020, Nio said.

"In May, we achieved record-high monthly deliveries in our history," William Li, founder, chairman and CEO of Nio, said in a statement. 

The strong numbers were achieved despite fewer selling days in May due to the public holiday.

Nio's Turnaround Takes Root

After the COVID-19 induced slackness in January and February, the company began taking a turn for the better in March, reporting 116.8% month-over-month increase in deliveries to 1,533 vehicles. The momentum continued into April, as Nio delivered 3,155 vehicles in April.

"We remain fully committed to the vision of building the best user enterprise by offering high-quality premium smart electric vehicles in the years to come," Li said.

"We expect to achieve the delivery goal for the second quarter 2020, while continuously improving gross margin and narrowing operating loss," CFO Steven Feng said in a statement. 

In its first-quarter earnings report released May 28, Nio guided to second-quarter deliveries of 9,500-10,000 vehicles.

Nio shares surged to a multi-month high Wednesday thanks to a 19.15% rally. The strong upward move came about amid an upgrade from Goldman Sachs. 

In premarket trading, Nio ADSs were adding 8.04% to $6.05. 

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Photo courtesy of Nio. 

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