Nio Stock (NYSE:NIO) is surging pre-market following the companies record breaking November delivery results, bouncing back from a weaker month prior. NIO remains an Electric Vehicle powerhouse in China, dominating the market alongside Li Auto and Xpeng.
In the month of November, Nio delivered 10,878 Electric vehicles, outflanking its previous monthly record. The November Delivery news comes at some relief to shareholders, following lower than expected deliveries in October. The lower October delivery numbers were primarily due to operational changes to make way for the ET7 in 2022. In this article we will dive into everything investors need to know about the recent Nio Delivery Numbers.
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Why the record breaking deliveries are a big deal
Today, Electric Vehicle Manufacturers face many operational and financial challenges in the current market. In this emerging industry, deliveries or sales hold additional weight as they play a primary role in keeping an EV startup functional. Nio’s ES6 SUV high performance model remains the most popular, attributing to 4,713 deliveries in November.
As for Nio’s flagship SUV ES8, the company delivered 2,683 while the companies EC6 SUV Coupe contributed 3,482 deliveries respectively. Collectively, this is the first month Nio has exceeded 10,000 vehicle deliveries in the same month.
For comparison, both Li Auto and Xpeng are currently outpacing Nio in deliveries. In November, Li Auto delivered 13,485 Li Ones while Xpeng delivered 15,613 vehicles.
The cut throat EV competition continues to heat up, which means Nio’s management lead by William Li will need to push for production efficiency and greater margins.
This is why competition can be both a threat and a benefit to shareholders based on how management responds.
Nio Delivery Numbers Build Hype For the ET7
The strong demand for Electric Vehicles in China is beginning to show. Analysts don’t see this growth slowing anytime soon either. The ET7 is expected to be Nio’s growth catalyst, driving strong revenue through 2022-2025. NIO is expected to deliver 70,000 ET7 vehicles in its first year of production.
This will bring the company’s total deliveries to 170,000 units in 2022 according to China International Capital Corporation (CICC), China’s largest investment bank.
The ET7 may just be Nio’s ticket to dominating the Chinese market over both Xpeng and Li Auto. According to reports, Nio expects to begin ET7 reservations as early as January 2022, while deliveries are expected at the later-half of the first quarter. The ET7 was first unveiled on November 19 at NIO House in Shenzhen’s Ping An Financial Center.
Citi analyst sees Nio Stock doubling
Citi analyst Jeff Chung may just be Nio’s biggest Bull. The analyst sees “multiple positive catalysts” for Nio Stock in December through to 2022. These catalysts include Nio Day which is to be held by mid-December and the pricing of the new model ET5. Chung currently has a $87 price target on Nio stock, representing an upside of 128% from the current trading price.
See our full Nio Stock Forecast here.
Nio Delivery Numbers Break Records: The Bottom Line
Overall, the strong November delivery results are driving Nio’s share price higher this morning, while Xpeng and Li Auto stock are also trading higher. In addition, the ET7 launch is also building hype around Nio Stock, with deliveries expected to take effect in 2022.
As noted above, the CICC believes the ET7 will bring roughly 70,00” additional deliveries in 2022 which may be enough to drive Nio deliveries above its peers.
The big question remains if Nio can keep up with Li Auto and Xpeng, who are delivering larger volumes of vehicles while facing the similar operational challenges.
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The content above is strictly for informational purposes only and is not financial advice nor does it constitute a recommendation. 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.