NIO Stock: Nio Shares Climb on New Monthly Delivery Record
Sometimes a company just needs to swap out the battery to add even more charge. At least that seems to be the case with the Chinese market leader for electric vehicles Nio (NYSE:NOK) today. After a few tough days in the red, NIO shares rose higher on Tuesday. It did so after Nio reported another monthly record for vehicle deliveries. What do you need to know now?
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- Nio delivered 5,291 vehicles in November 2020, an improvement of 109.3% over the previous year.
- The number in November is also up 4.7% from 5,055 vehicles in October 2020.
- Since the beginning of the year, Nio has delivered 36,721 vehicles in 2020. This corresponds to an increase of 111.1% compared to the previous year.
- In addition, Nio has published a cumulative delivery number for its ES8, ES6 and EC6 models.
- Since delivering vehicles, the company has reported 68,634 deliveries.
- The delivery of the ES6, its performance-oriented electric SUV, is groundbreaking in November.
- It is important that Nio delivered 2,386 ES6.
- Nio also shipped 1,387 ES8 and 1,518 EC6.
- Investors should note that deliveries of the new EC6 are up almost 72% month-over-month from 883 deliveries in October 2020.
- After setting a new monthly record in October, Nio announced that he has set another record for November 2020.
- With this in mind, the company announced in the press release that it would expand its production capacity for December to meet growing demand.
- The increase in production capacity was also a focus of the earnings statement for the third quarter.
Why November deliveries are important for NOK stores
In many ways, the appeal of the November delivery report should be obvious. As Nio continues to gain legitimacy and appeal with US investors, it is important that the company actually expand its presence in China and increase its manufacturing capacity. Against this background, the fact that new delivery records are constantly being set is very promising. In fact, investors have bid NIO stock by more than 1,000% so far in 2020.
However, the November delivery report follows a few trading days. Just yesterday we saw that the stock was down 6.4%. What’s behind the rough spot? Well, Nio and his colleagues Xpeng (NYSE:XPEV) and Li car (NASDAQ:IN THE) fought thanks to some catalysts.
As we reported last week, the Chinese National Development and Reform Commission is asking its regional offices for more information on local EV manufacturers. Unfortunately, it is still too early to know exactly what this will mean for Nio and his colleagues.
With promising November shipments in the rearview mirror, investors may be forgiven for NIO stocks. There is also another reason to be excited. According to several reports, Nio representatives were featured on a national Chinese television show to discuss the EV market. Many see it not only as good press, but also as a sign that the government will continue to support NIO stock.
NIO stocks are up 2.2% in pre-market trading.
At the time of this writing, Sarah Smith held positions (either directly or indirectly) in any of the securities referred to in this article.
Sarah Smith is a web content producer for InvestorPlace.com.