NIO sold over 10,000 electric cars in the second quarter this year, with rival Tesla also surpassing production estimates from Wall Street for the same quarter. Stocks of the two rival groups soared.
NIO rolled out 10,331 electric sport utility vehicles in the second quarter, up 190.8 percent year-on-year and nearly triiple for June at 170 percent compared to the previous quarter, continuing to rebound from the coronavirus outbreak in China.
NIO was planning to hit 9,500-10,000 deliveries of their premium electric SUVs but for now it is only available in China, and not in the US. For the first time, NIO has exceeded the 10,000 mark for deliveries in a quarter, registering a new record high. The company's previous best-ever quarter was in the fourth quarter at 8,224.
For the first six months of 2020, NIO deliveries totaled 14,169. In June for instance, the Chinese group unloaded 2,476 ES6s, its five-seater, and 1,264 ES8s, the six- and seven-seater versions. NIO attributed the month's robust results to its superior services, products, and growing sales network.
According to William Bin Li, founder, and chief executive of NIO, for June, they achieved "a historical high of monthly deliveries, contributing to our best quarterly performance," Dan Weil of The Street, quoted Li as saying.
After NIO's revenues bottomed in February due to the ill effects of the ongoing global health scare, the company has been witnessing a resurgence along with the wider vehicle sector. The electric carmaker has bolstered up its financial reserves through private ventures of debt and cash investments from strategic partners.
NIO's near-term forecast is very promising, with Bank of America securities analyst Ming Hsun Lee estimating new deliveries to improve with the commercial unveiling of the company's EC6 electric sport utility vehicle in the third quarter and the launching of a 100 kilowatt-per hour battery pack in the fourth quarter.
NIO's shares have rallied to an impressive 130 percent for the current year, contrasting with declines of around 3 percent and 9 percent for the S&P 500 index and the Dow Jones Industrial Average. On Thursday, Tesla Inc. posted a standout quarterly delivery and output figures, relying primarily on the US firm's new Shanghai-headquartered facility.
Car investors have reason to be delighted with the news. The so-called 'Chinese Tesla' has come a long way since the start of the year when its financial reserve was depleting and the coronavirus outbreak in China threatened to push the company to the edge of bankruptcy.
