Nio is on track to exceed expectations for the second quarter, following a record-breaking delivery performance in May. Analysts project the company will deliver over 54,000 electric vehicles (EVs) by the end of Q2, despite a slight decline in June compared to the previous month.
According to Deutsche Bank analyst Wang Bin’s team, Nio is expected to deliver 18,200 EVs in June, reflecting a robust 68% year-on-year increase but marking a 12% decrease from May’s peak of 20,544 units. The company’s strong May figures set a new milestone, surpassing its previous record of 20,462 deliveries in July 2023.
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In the first five months of 2023, Nio delivered a total of 66,217 EVs, demonstrating a solid 51% growth compared to the same period last year. Despite falling short of first-quarter estimates, Wang’s team remains optimistic about Nio’s performance in Q2, projecting total deliveries to reach 54,200 units, aligning with the company’s guidance range of 54,000 to 56,000 vehicles.
Highlighting recent developments, Wang’s team noted that Nio achieved domestic sales of 7,000 units within the first two weeks of June. The introduction of the new Onvo brand, aimed at the mass-market segment with models like the L60 electric SUV priced competitively at $30,500 (219,900 yuan), is expected to bolster future sales.
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Nio’s expansion strategy includes plans to launch a larger electric SUV under the Onvo brand next year, alongside ongoing efforts to increase production capacity. Recently, Nio commenced construction on its third factory, which is anticipated to elevate its total production capacity to 1 million units, comparable to Tesla’s Shanghai plant.
Despite operational strides, Nio’s stock has experienced a significant decline of over 47% year-to-date and remains 92% below its peak in February 2021, reflecting broader market challenges faced by EV manufacturers including Rivian, Lucid, and Tesla.
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Nio’s president and co-founder, Qin Lihong, affirmed the company’s current production capabilities, stating, “Nio does not have an overcapacity problem,” in an interview with local media.
As Nio navigates through market fluctuations and competitive pressures, analysts and investors are closely monitoring the company’s ability to sustain growth amidst evolving market dynamics and competitive pressures in the global EV sector.
