Today NIO Inc. (NYSE:NIO) provided a delivery update for the month of July, recording 7,931 vehicle deliveries for the month. This equates to a YOY growth of 124.5% and just falls short of the companies record month in June delivering 8,083 vehicles. Notably, the company saw a 13.8% spike in deliveries for the ES8 month-on-month (MoM), NIO’s latest flagship SUV.
NIO noted a slight decline in deliveries for the ES6 SUV, falling by 2.3% month-on-month (MoM). Lastly, the EC6 also saw a decline in deliveries for the month, falling 9.5% (MoM).
Despite the positive YOY growth in deliveries, Li Auto was able to beat NIO in deliveries for July with 8,589 Li One SUVs. Another domestic competitor, Xpeng also recorded more monthly deliveries with 8,040 vehicles.
Nevertheless, the company has produced its second best month to date in terms of deliveries. In addition, the company also reached a milestone of 125,528 vehicles delivered since inception. With record deliveries in June to close off the second quarter, investors are expecting strong revenue improvements in the upcoming Q2 earnings release.
Analysts expect revenue to grow by 13.2% in Q2
NIO delivered 21,896 vehicles in the second quarter ending in June, which was an improvement of 9.1% quarter-on-quarter. Analysts expect NIO to generate $1.28 Billion in the second quarter.
If this result is realised, the companies revenues will be growing 13.2% (QoQ). This is a positive sign for shareholders as the company continues to beat its past quarterly performances.
Wallstreet maintains a bullish stance on NIO news
Firstly, the general consensus amongst analysts is bullish. Across the board of 17 Wallstreet analysts, the average 12 month price target is currently $57.61 a share (upside of 28% from the current trading price).
However for price targets released in the last quarter, the average sits at around $62.17 a share (41% uptrend from 2020 analyst coverage).
More notably, Citi analyst Jeff Chung raised the firm’s price target on Nio to $72 from $58.30 in June. Chung also has maintained the Buy rating on NIO stock.
The analyst told investors that he expects “robust shipment volume” in June followed by sequential quarter-over-quarter improvement in Q3 and Q4 according to theFly.
Chung raised his 2021 sales volume estimate to 93,000 units from 90,000 and raised his 2022 and 2023 unit forecasts.
The Bottom Line – NIO news on July deliveries
Overall, the delivery performance in July concretes the strong demand NIO is receiving in the Chinese EV market. Although July deliveries dipped slightly coming off a record month in June, investors will be focusing in on revenue and EPS performance in the Q2 earnings.
The Q2 earnings will be held on 11 August, after the close of the U.S. markets.
See the full NIO stock news and forecast below
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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