Shares of NIO Inc, which recently registered an all-time peak, traded on a high note again on Monday on the New York Stock Exchange after the Chinese electric vehicle maker posted July deliveries that increased more than 300 percent from 2019 figures.
The group received record orders last month, rolling out 3,533 vehicles that comprised 2,610 ES6s and 923 ES8s. These deliveries represented a 322.1 percent hike from July last year.
As of July 31, NIO's cumulative orders for its the ES8 and the ES6 totaled 49,615 units. In the year through July 31, the company delivered 17,702 vehicles, reflecting a surge of 111.3 percent year-over-year.
NIO chief executive officer William Bin Li said the company was delighted to have attained its second-biggest monthly deliveries result despite the negative effects on productions of a five-day halt in production to prepare for EC6 assembly and other flood-related supply chain issues.
Li said that the EV maker did break one record last month – its monthly delivery growth has never been bigger. That, and the Chinese group's outstanding second-quarter sales output, bodes well for an optimistic response from car investors when NIO posts its earnings for the second quarter.
The Chinese electric vehicle upstart has gained the interest of growth capitalists, and its latest delivery results buoyed its stock significantly. The share price of NIO was up nearly 11 percent on the NYSE and settled at $13.60 on Monday. Shareholders reacted positively to the latest development from the Chinese EV group.
NIO's share price has already grown threefold since the end of May, so there is a lot of excitement associated with the shares. Nevertheless, with such a massive market opportunity, the company is looking at a long growth path ahead of it if it can carry out effectively its business strategy.
The Chinese electric car builder said delivery growth is seeing a major boost, indicative of robust ES6 and ES8 demand, along with increasing orders for the EC6. Li said they are confident they can hike their output figures significantly to support more deliveries in the third quarter this year.
NIO seeks to entice a younger and much larger fan base for the trendy and high-performance EC6 which has a100 kWh battery pack. EC6 orders are seen to kick off next month.
NIO's three latest car models are complementary to each other and is expected to aggressively take a bigger share from both the internal combustion engine and electric vehicle market, chief finance officer Steven Feng disclosed in a media release.
